The weekly oil inventory report from the Energy Information Administration (EIA) saw another week of rising inventories. For the week ending October 4, commercial crude oil stockpiles rose 2.9 million barrels. This marks a fourth consecutive weekly increase in oil inventories. The EIA, earlier in the week, released a report where it lowered the crude oil price target to $57.00 by the second quarter of 2020. This was down from the previous estimate of $62.00 a barrel.
WTI Crude Oil Attempting to Rise Higher
Oil prices are seen posting a bottom near the 51.70 level. Price action managed to rise to the upside at 53.55. A breakout above this level will confirm the upside bias. The divergence on the four-hour chart remains which indicates the upside. In the near term, watch for price action to close above 53.55 to confirm further gains.
