Oil Prices Go Five for Five

WTI and Brent's futures finished higher for the fifth consecutive trading day.

West Texas Intermediate (WTI) and Brent crude oil futures finished higher for the fifth consecutive trading day.

The September WTI gained 53 cents Wednesday, settling at $58.58 per barrel. The light crude market traded within a range from $57.86 to $58.82.

"September WTI yesterday finally broke out to the upside from the sideways congestion pattern that the market had been in for over a week and the September contract closed above the $57.44 major resistance level and closed right near the downtrend line of resistance seen on the daily chart," said Steve Blair, senior account executive with the RCG Division of Marex Spectron.

Brent crude oil also edged upward during midweek trading. The October contract price finished the day at $65.05 per barrel, reflecting a 42-cent gain.

"October Brent closed above the major resistance level at $64.42 yesterday and continued to move higher for much of the trading session, also being influenced yesterday by the 'pre-API' buying as well as overnight this morning," said Blair.

Blair was referring to Tuesday's petroleum market rally in anticipation of new American Petroleum Institute (API) figures showing a draw in crude oil inventories.

"The price action continued overnight and into this morning after API showed the large 6 million drawdowns in crude stocks," Blair continued, adding that subsequent inventory figures from the U.S. Energy Information Administration (EIA) figures showed an even larger draw. "Markets immediately rallied but not to the extent that would have been expected with the figures released, and prices did not take very long to retreat and actually make some new lows for the day."

Blair also noted that price movements were similar for both the WTI and Brent following the release of the EIA report as well as the U.S. Federal Reserve's expected announcement that it would cut short-term interest rates by 0.25 percent.

"October Brent has major support at the $64.42 level, which was the previous resistance, and currently resistance seen at $65.60 and then up at the $67.14 level, which is the longstanding downtrend line of resistance seen on the daily chart," he said.

Reformulated gasoline (RBOB) posted a modest increase. The August RBOB contract, which expired Wednesday, added one-half of one cent to settle at $1.90 per gallon.

Referencing September RBOB, which gained nearly two cents to end the day at $1.86, Blair said the benchmark's daily chart shows a long-term downtrend line of resistance at $1.8722 at midweek.

Henry Hub natural gas for September delivery posted a solid gain Wednesday, adding nearly 10 cents to close at $2.23.

"Natural gas futures have been under extreme price pressure over the last several trading days on the back of a lack of above-normal temperatures being seen in many of the consumer demand regions such as the Midwest, Great Lakes, Northeast, and the East Coast," Blair said, adding that more above-normal temperatures are expected in the near term.

The new predictions "pushed prices to gap open today and back above the $2.134 resistance level and move today the $2.298 and $2.305 major resistance levels," Blair noted, referencing the September Henry Hub daily chart. "Support now seen at $2.174 and the $2.134 pivot points."