The price of crude oil is settling higher by $1.26 or 2.2%. The price settled at $58.50.
Contributing to the bullish sentiment is a drawdown of -0.961 million barrels versus an expected build of 1.205 million. Gasoline inventories also declined by -2.147 million versus expectations of a drawdown of -0.809 million.
In addition, the White House confirmed that they will build the strategic petroleum reserve (SPR). In making the announcement, the US Energy Secretary Wright also said that it was a “great time” to buy oil.
Although Pres. Trump said the price of oil would be moving down down to $2, the low is between $2.50 and $2.75 with the average price at $3.06 according to AAA.
Topside resistance is between $59.78 and $60.10. Above that a swing area between $61.45 and $61.94 is another target area that would need to be broken to give the buyers more confidence.
