The price of crude oil is moving lower after the weekly inventory data showed a stronger build than expected. Crude oil inventories showed a build of 1.338 million barrels versus a drawdown of -0.675 million estimate. Gasoline and distillates were also much stronger-than-expected. Gasoline inventories shown at buildup 8.0299 versus 2.489 million estimate. Distilates showed a build of 6.528 million versus estimates of 2.382 million.
Looking at the hourly chart of crude oil below, the price is trading lower but still up on the day. The price is currently at $72.79. That is up about $0.60 on the day. On the downside, the 100 and 200-hour moving averages are near converged at the $72.30 area. A move below those moving averages would be needed to tilt the buyers more in favor of the sellers from a technical perspective.
This article was written by Greg Michalowski at www.forexlive.com. Source