Oil briefly spikes after US weekly EIA data showed a big decline in stockpiles.
WTI Oil snaps $83, but faces resistance to break back above it again.
The US Dollar Index retreats further, forming a bearish pattern.
Oil prices edge up on Thursday as traders digest the US Crude Inventory release, which was taken as bullish for near-term prices. Overall, the release showed a chunky draw of 6.368 million barrels, which puts the US inventory at its lowest level since January 19 by 453.6 million barrels. This might trigger some buying from the US Energy Department in order to build up stockpiles again ahead of the next heating season.
The US Dollar Index (DXY) has fallen in a bearish pattern. For a third day in a row, the index is posting lower highs and lower lows on the daily chart. This could point to a gruesome correction ahead, and with preliminary US Gross Domestic Product (GDP) release on Thursday and the Personal Consumption Expenditures (PCE) Price Index on Friday, catalysts are enough to trigger that breakdown.
Crude Oil (WTI) trades at $82.71 and Brent Crude at $87.11 at the time of writing.
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