WTI Crude prices may hinge on this week’s supply data
After the close today well get oil inventory data from the American Petroleum Institute. Last week we got a draw of 4.261M bpd, which helped WTI continue its ascent higher. Tomorrow well get EIA supply.
If we see an excess supply in the data this week, price is likely to move lower. If we see another draw, price is likely to continue higher.
In addition, WTI and the S&P 500 are highly correlation with a correlation coefficient of .93. If the S&P 500 moves lower, is may likely to pull crude oil down with it. Also notice that although the RSI has pulled back, it is still in overbought territory, indicating the possibility of a pullback in price.
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