Hugo
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Hugo in HTO Trading,

Crude Oil: At a key support level

Oil prices had trended higher sparked by a smaller-than-anticipated build in US crude and sharper-than-expected falls in petrol and diesel stockpiles.

Prices also got a boost from separate data showing US oil output in August fell to third lowest figure this year.

The Baker Hughes rig count for oil, a closely watched benchmark of drilling activity, fell by 16 rigs to 578, the least since June 2010.

Since the beginning of the year oil prices fell more than 12.0% and is holding at a weekly support. Last week crude oil initially fell with a narrow range but found enough buying pressure to trim losses and closed in the green near at the high of the week. The commodity is in a recovery phase since the end of September and the stochastic is showing a week bullish momentum although is above the 50 mid line.

Expecting an upward move to a key level at 50.90 (scenario 1) or even up to a weekly resistance at 59.20 (scenario 2) on a break above previous week high at 50.11.

LCrude is a CFD written over Light Crude futures.