After some nice trends to start the year, WTI oil prices are caught in a chop. A $1.60 gain today erased two days of declines but failed to break last week’s high of $97.84.
Market-watchers point to distillate demand because of cold weather. The API stockpile report today and EIA data for Monday will be closely watched. They could also indicate a drawdown of supplies from Cushing because of the startup of the southern portion of the Keystone pipeline.
Technically, the ability to hold the 55-dma today is bullish but it will take a break of $98.00 along with the 100-dma to re-take $100. I lean toward longs because Feb-March is the most bullish time of the year for crude.
WTI crude oil
If you want the bear case, here’s what Ryan had to say.