Oil price remains near this year’s high above $48/barrel because of supply disruptions which may decrease the global supply.
Supply disruptions occur in Nigeria, Venezuela and other places which potentially will decrease the global oversupply. Moreover, production capacity in Canada has not fully recovered yet. Decline of US oil production boosts oil price as well.
The American Petroleum Institute reported that US oil stock has declined 1.1 million barrels within a week that ends May 13. Today, we are waiting for official oil inventories data from Energy Information Administration at 14:30 GMT. The figure is expected to rise to -3.1 million from -3.4 million.
On hourly chart, oil price remains in upward trajectory. We can see that the bullish momentum is a little bit low as the price moves sideways. Intraday support area is at 48.27-47.98. Watch for bullish signal confirmation on a pull-back move to within the support area in order to look for buy signal confirmation to go long with 48.45 as target and 48.74 in extension.
Please be careful if the support at 47.98 breaks because it will turn the intraday bias to bearish and possibly will be drag oil price lower to 47.77-47.51.