The U.S. Energy Information Administration (EIA) revealed on Wednesday that crude inventories fell by 0.427 million barrels in the week ended May 7, following a plunge of 7.990 million barrels in the previous week. Economists had forecast a drop of 2.817 million barrels.

At the same time, gasoline stocks rose 0.378 million barrels, while analysts had expected a decrease of 0.600 million barrels. Distillate stocks dropped 1.733 million barrels, while analysts had forecast a draw of 1.08 million barrels.

Meanwhile, oil production in the U.S. increased by 100,000 barrels a day to 11.000 million barrels a day.

U.S. crude oil imports averaged 5.5 million barrels per day last week, up by 37,000 barrels per day from the previous week.

FXStreet reports that gold (XAU/USD) is approaching the 2020-2021 downtrend at $1865. The yellow metal is expected to break above here to target the $1959/65 neighborhood, according to Karen Jones, Team Head FICC Technical Analysis Research at Commerzbank.

“Gold is approaching the 200-day ma at $1848 and the 2020-2021 trendline at $1865, while these may hold the initial test, we are looking for a break higher. Above here will target the $1959/65 November 2020 high and the 2021 high. These guard the $2072 2020 peak.”

“Dips lower will ideally be contained by the $1788 6-week uptrend. This guards the 20-day ma at $1758, while above here the market should continue to stabilise.”