Crude oil futures are currently settling at $58.95, up by $0.31 or 0.53%. During the session, prices reached a high of $59.64 and a low of $58.37.

The latest EIA weekly inventory report revealed larger-than-expected builds across key categories. Crude oil inventories increased by 0.574 million barrels, contrary to the anticipated drawdown of 0.821 million barrels. Distillate stocks rose by 2.059 million barrels compared to the forecasted 0.707 million barrels increase. Gasoline inventories also climbed sharply by 4.518 million barrels, significantly above the estimated 1.468 million barrels.

From a technical perspective, oil prices have mostly traded above the rising 100-hour moving average at $59.07 but are currently settling just below this level. The 200-hour moving average sits at $58.65 and represents a key support level; a break below this could give sellers more control over the market.

With inflation concerns remaining an issue for the current US administration, there is likely to be a focus on keeping oil prices from rising too high.

For buyers to regain control, the price will need to break above a downward-sloping trendline, which currently intersects near $59.82. Sustained movement above $60 would serve as an important indicator of bullish momentum in the short term.

Original Source: Greg Michalowski of investinglive.com