Overview:

Yesterday's EIA stats were a mixed bag: a larger than expected draw in crude inventories signalling rising demand but the supply remained still abundant with the surplus way over the 5 years averages helped by a much larger than anticipated build in gasoline stocks. After crunching the numbers market participants decided to go long in crude encouraged also by a weaker US dollar. The effect was a rebound in price from the lower opening but further runs into high territory will probably need the assistance of additional weakening in the dollar and / or extended gains in the equities market.

9 day moving average - $71.58 14 day moving average - $70.59 40 day moving average - $62.74

Technical Report:

Initially we saw crude moving lower dropping below the psychological important $70.00 level and breaching the 9 and 14 day moving averages in the process. Nevertheless reaching an intraday low of $69.71 which in effect denied last week gains has attracted fresh buyers to the market and consequently crude recouped its early losses even managing to finish into positive territory. So overall crude advanced $1.12 to settle at $71.70 in a choppy trading session that hinted a possible sideways range.

The short and medium term trends are bullish and the long term trend is bearish.

WTI:

Support: $69.71 (yesterday's low) Resistance: $73.42(high of 16/06/09)

Support:$69.37 (low of 09/06/09) Resistance: $72.97(high of 15/06/09)

Support:$68.40 (low of 05/06/09) Resistance: $72.00(yesterday's high)

OIL (BRENT):

Support: $69.02 (yesterday's low) Resistance: $72.40 (high of 16/06/09)

Support:$68.56 (low of 15/06/09) Resistance: $71.64 (high of 12/06/09)

Support:$67.35 (low of 05/06/09) Resistance: $71.12 (yesterday's high)

DOE Stock Figures (change in millions of barrels)

Crude -3.4 (-1.7) Distillates+0.3 (+0.8) Gasoline +3.3 (+0.3)