WTI dips on EIA miss but bulls committed on $63 handle

• WTI dumps on EIA data but looks to recover.
• Techncially bullish, but 4hr RSI turning negative.

Oil costs pared some of their increases on Wednesday after the Energy Information Administration reported revealed that local crude supplies fell by 4.9 million barrels for the week ending Jan. 5 and was a big miss vs the expectations of a  3.5 million-barrel decrease figure by analysts reviewed by S&P Global Platts.

Price action

WTI has been trading between a low of $62.93bbls and $63.58bbls the high on Wednesday, the high being the best levels since late Nov 2014 and above the 25th April weekly stick's peak. The price is currently recovering from the knee-jerk drop at $62.93 and has moved back to $63.20 where it is looking to stabilise. 

EIA: US commercial crude oil inventories decreased by 4.9 mln barrels

(Casting minds back to yesterday, The American Petroleum Institute on Tuesday, be that as it may, had revealed a decay of 11.2 million barrels, as indicated by sources.) Fuel reserves rose 4.1 million barrels for the week, while distillate stores included 4.3 million barrels, as per the EIA. The S&P Global Platts study estimates a supply ascent of 2.3 million barrels for fuel and an expansion of 2.1 million barrels for distillates. 

Oil levels

Technically, the price remains bullish above the ascending 100 SMA on the hourly sticks at $620.06bbls, but 4-hr RSI is turning negative vs the prior upside trajectory. However, the 10 sma was crossing back up through the 21 sma on the same time frame and holds its northerly trajectory. The daily picture is more positive with momentum and RSI in bullish territory. WTI resistances comes in at $64.00 ahead of $ 64.63 (classic R2/ Fib R3) and $65 (psychological levels). On the flipside, supports are located at $62.90 (daily pivot), $62.30 (5-DMA) and $61.62 (10-DMA).