At present, the market for crude oil is a very unpredictable one.
The inventory build was much greater than predicted, causing the price to drop briefly before increasing again. This was likely due to closures of refineries due to cold weather, which probably should have been taken into account in the expectations. Nonetheless, the build was still far greater than anticipated.
The hourly chart demonstrates that crude prices dropped to a minimum of $75.67 below the 200 hour MA of $76.03, however, it has now bounced back to $76.58. This is a curious occurrence.
The prices of crude oil have been fluctuating as the markets take into account China’s reopening and other global trends, as well as the weather and technicals. The private inventory report that was published yesterday, which showed an increase of 14 million barrels, was an indication of today’s 18 million barrel jump. After the private report, the price of crude fell below the 100 hour MA (blue line in the chart) but it did not decline significantly. Once the price started to climb again, buyers took over, pushing it away from the 100 hour MA and above the 200 hour MA.
It might be a better idea to not interfere and just let the situation remain as it i