After dipping down to $78.13, WTI crude oil regains earlier losses and reaches $80.58 per barrel.
United States's Crude Oil Inventories new data released of 8.41 million below its previous figure.
West Texas crude upside coincides with further encouraging market factors as highly important Crude Oil Inventories data from United States beat analyst expectations of -593,000 with a reading of 8.41 million. United States Initial Jobless Claims beat analyst expectations of 214,000 and the previous reading of 205,000 with new data of 190,000.
Meanwhile, United States Philadelphia Fed Manufacturing Index (Jan) released today at 13:30 UTC with a figure of -8.9, while the previous figure was -13.7.
A "bearish engulfing" pattern — a scenario when a larger red candle engulfs a smaller green candle, at the top of a prevailing uptrend. Typically this is a signal of lower prices in the near term. Although up today, early price action saw US crude oil dropping below its 50 day Simple Moving Average at $78.23 — an early indicator that a new downward trend could be emerging. US crude oil's upper Bollinger Band® is at $82.83, this is a slight indication of a slowdown. WTI crude could be slowing down soon; it is getting close to the resistance line and is now at $81.59, only $1 away. Crossing the resistance line could, however, suggest that further gains are ahead. On the other hand, note that price action remains constrained around the key Fibonacci level of $81.12 currently serving as resistance
Despite basking in an uptrend and bullish intraday sentiment, chart analysis indicates US crude oil is set for a reversal in the coming days.
Rallies can also be seen in other Energy, Heating Oil soars 3.68% to trade around $3.38. Brent Crude Oil gained 1.52% and is currently trading at $86.27.
At the same time, after ending yesterday's session at $3.31, Natural Gas lost 11.2 cents and is trading around $3.2.
The market is looking forward to the release of new data: United States Existing Home Sales (Dec) will be released tomorrow at 15:00 UTC.
Having set a significant low of $71 a month ago, WTI crude is trading 11.91% higher.