LCrude oil is once again on the rise as traders take advantage of global tensions to bump and sell the commodities. LCrude has been on a rollercoaster over the past week induced by speculation and not by fundamentals as the global oil supply remains without disruption.
Yesterday the U.S. Energy Information Administration (EIA) released its latest survey. The report was expected to show a drop in LCrude stocks with estimates at 2.1 million barrels but the actual was worse than expected dropping to 3.9 million barrels, triggering a solid short-covering rally.
Expecting upward move to 104.53 on a break above previous day high at 103.29 (scenario 1) or a break below the 101.57 level could push LCrude prices to 99.68 (scenario 2).
LCrude is a CFD written over Light Crude futures.