FxWirePro: US Oil spikes higher despite large US inventory build, hits new 8-month high
USOIL chart - Trading View
WTI spiked higher overnight despite API inventories data showing a large buildup in US inventory.
American Petroleum Institute (API) data on Tuesday showed crude oil inventories of 3.8 million barrels for the week ending Nov. 20, beating analysts' forecast of an inventory build of just 127,000 barrels.
Oil prices hit new 8-month high at 45.67 on Wednesday's trade, expectations for vaccine-led global economy recovery supported gains.
West Texas Intermediate (WTI), the North American oil benchmark is currently trading at $45.39 per barrel, up 1.35% at the time of writing.
Technical analysis also supports gains. Bullish momentum indicators and rising volatility to boost further upside.
Next major bull target lies at 110W EMA at 46.88. Further gains could see test of 200W MA at 53.27.
On the flipside, 5-DMA is immediate support at 43.43. Retrace below 42.24 (55W EMA) will negate bullish bias.