Oil prices closed higher on Tuesday, May 4 despite a slight correction during the Asian trading session. The Brent price action started out at $67.6/bbl. Prices reversed course after a fleeting intraday pullback to $67.2 and ended the day at $69.2. Last evening’s API report unveiled a 7.7 mln bbl drawdown after a build of 4.3 mln bbl a week earlier.
Crude prices continued to push higher during the first half of trading on Wednesday. Even before noon, Brent broke out of the $69.6 resistance level, retracing to a March 8 high. The likely trading range for the European benchmark during the rest of the day is $68.9-70.3. The medium-term range for Brent, after breaking out of the $69.6 level, has been raised to $66.0-71.0.
The EIA’s weekly petroleum status report is scheduled for release at the beginning of the North American session. Experts expect to see a 2.3 mln bbl drawdown compared to a build of 90,000 bbl in the previous week.