The EIA report was mixed yesterday but traders decided to focus on positive numbers and took the barrel higher. According to the official data, US crude oil inventories rise 5.4 million barrels last week, while production declined by 100K barrels to 12.1 million barrels per day. The market was also supported by geopolitics as Saudi Arabia reported drone terrorism against pipeline infrastructure.
However, the potential for Brent remains limited due to the lingering global risks from the rising US-China trade tensions to weak economic data from the world’s two largest economies. Technically, prices need to confirm a break above the $72 figure in order to challenge the $72.50 intermediate resistance which capped the attempts early in the week.