Crude Oil Remains Strong | RJO FuturesPosted 04/10/2017 11:32AM CT |
While the fundamentals on crude oil are mixed, the path of least resistance still remains to the upside. Geopolitical uncertainty continues to firm crude oil, along with OPEC cuts starting to show in the supply numbers. On the other hand, US crude oil storage is at an all-time high of 536 million barrels. Baker Hughes reported the US oil rig count is at a 2 year high of 672 rigs up 10 from the previous week. These bearish factors are helping to offset some of the bullishness, but the bulls are definitely still in control.
From a technical standpoint, the trend is clearly higher with the market blowing through the 200-day moving average last week. The upside target and first resistance level comes in at $53.20, which was a big support level for January and February. RSI is starting the show the market as getting close to overbought.