TechnoMeter

Crude Oil price rose for the fourth consecutive day on Tuesday that provides hope that we could see a long overdue mean-reversion move. The fourth consecutive daily rise in price would be the first in a month, and traders will look to inventory data on Wednesday from the EIA for validation that draws are persisting despite the rise in supply. On Friday, traders were met with the 23rd week of an increase in activated oil rigs in the US per Baker Hughes International, but the sellers did not control the day.

From an Intermarket Analysis perspective, the price of Crude Oil may have further support as the US Dollar took a dip against the EUR as ECB President; Mario Draghi shared a positive outlook and took EUR/USD above 1.13 for the first time this year. While a weaker USD could help, it is worth noting that Oil is likely retracing after working on the worst performing June since 1988.

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