Oil prices ended higher on Tuesday, April 6 despite a downward correction near the close. The price action for Brent started at $62.2/bbl. After a short-term decline to $61.9, the price reversed upward and reached $64.1 at the beginning of the North American session. Later the gains gave way to a correction, with Brent ending the session at $62.6. At the end of the day, prices were supported by the API report that unveiled a 2.6 mln bbl drawdown in crude inventories after a 3.9 mln bbl build in the previous week.
On Wednesday morning, oil has been trading within an expanding triangle pattern, with an increase in the amplitude of fluctuations. A decline to $62.1 was followed by an increase to $63.3. The likely trading range for Brent for the rest of the day is $62.4-63.7. The medium-term range for Brent crude is reduced to $61.1-65.3. The EIA’s weekly petroleum status report will be released at the beginning of the North American session. Experts expect to see a drawdown of 1.4 mln bbl compared to a decline of 876,000 bbl a week earlier.