Yesterday, the global crude oil prices dropped after the EIA reported increasing inventory builds in the United States. On Wednesday, the agency reported inventory builds of 6.8 million barrels, which beat analysts’ estimates.
According to the organization, the gasoline stockpiles fell by 2 million barrels down from the 3.1 million it reported in the previous week. On the other hands, oil refineries processed an average of 16 million barrels of crude oil last week down from 16.5 million in the previous week.
Previously, the American Petroleum Institute had surprised the market when it reported an estimated build of more than 3.28 million barrels.
Yesterday still, the EIA released a report defending its numbers to investors. Previously, many investors had punched holes on the accuracy and the methodology used by the EIA to collect the data.
Yesterday, Goldman Sachs, which has been bullish on oil for some time released a statement arguing that crude oil could reach more than $82 a barrel in the coming week.
In the coming months, we might see a continued buildup on oil inventories as the refineries enter the maintenance season.
Today, crude oil is gaining to recover some of the gains it had yesterday. As shown below, the decline seems to have bottomed with expectations that the price could continue moving up. The ADX indicator shows that an upward trend is forming and the RSI shows more upward trends. My prediction is, the bull run in crude oil is not over and the price could reach $70 a barrel soon.