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Crude oil resting in front of the EU summit (USO, FXE)

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The wind came out of petroleum's sails yesterday when the U.S. Department of Energy reported weekly inventories. Commodity traders were looking for a 1.25 million decline but got an unexpected raise to 1.33 million barrels instead.This morning, crude oil has been trading flat looking for direction from the euro zone summit.

Traders are once again are hopeful that the formal summit meeting will finally product a robust and executable plan to deal with the continent's now-two-year-old debt crisis.

Such an announcement will boost broad risk appetite, so focus on any headlines that emerge from the sidelines for any possible insight into the official statement that will come Friday.

Crude oil's technical outlook has not changes since putting in a Dark Cloud Cover candlestick pattern below resistance at $103 following a retest of the upward channel bottom established in October.

The pattern continues to suggesting a move lower ahead but headlines can quickly drive a direction on traders.

Initial support comes in around $94.

Traders can gain exposure to the oil market through the United States Oil Fund LP ( USO , quote ), which seeks to reflect the performance of the spot price of West Texas Intermediate (WTI) light sweet crude oil through the futures market.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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