Crude oil prices traded lower after data showed US domestic oil supplies rose for the second straight week while domestic production rose further above 10 million barrels per day Inventories of U.S. crude fell by rose 1.895 million barrels for the week ended Feb. 2, below expectations for for a rise of 3.189 million barrels. Gasoline inventories rose by 3.414 million barrels, well above the expectations for a build of 459,000 barrels, while supplies of distillate – the class of fuels that includes diesel and heating oil – unexpectedly rose by 3.926 million barrels, confounding expectations for a decline of 1.419 million barrels expected.
TECHNICAL OUTLOOK :
Crude Oil daily chart has formed "Rising wedge” pattern. The last session seems strongly bearish in trend ended up near the channel’s support slope line at $61.50(3958). The market is expected to continue in the same trend once it breaks below the channel’s support, testing all the way through $60.50-59(3893-3797) levels in the upcoming sessions. Alternatively, if the channel’s support holds strong then the market might turn bullish. The upside rally could test $62.50-64(4022-4119) Resistance holds at $64(4119) and additional support at $59(3797).