During the Wednesday session, Crude Oil (NYMEX:CL) futures have been traded mostly bullish. Previous to the Energy Information Administration (EIA) Inventories release, the crude soared to $57.13 per barrel, the highest level of the week. The EIA reported a reduction on the inventories to -2.732 million barrels, more than the 1.89 million barrels forecasted by analysts.
The intraday picture
Despite the advance on oil demand, this was not enough to drive to CL to strike a new weekly high. The 30-minute chart shows the decline below the previous intraday low at $56.14. The fall developed with considerable volume, making us expect a correction with a target between $55.66 and $55.31.
Mid-term, we consider the possibility of a new upside movement. From the last CoT report, we observe the increase of 1.13% of long positions and the decline of 0.23% of short positions reported by the last CoT report.