The U.S. Energy Information Administration (EIA) revealed on Wednesday that crude inventories declined by 1.662 million barrels in the week ended May 21, following a build of 1.321 million barrels in the previous week. Economists had forecast a draw of 1.050 million barrels.

At the same time, gasoline stocks dropped by 1.745 million barrels, while analysts had expected a decrease of 0.614 million barrels. Distillate stocks tumbled by 3.013 million barrels, while analysts had forecast a fall of 1.900 million barrels.

Meanwhile, oil production in the U.S. remained unchanged at 11.000 million barrels a day. 

U.S. crude oil imports averaged 6.3 million barrels per day last week, down by 138,000 thousand barrels per day from the previous week.

FXStreet notes that gold (XAU/USD) has maintained a bull run following the recent break of the 2020-2021 downtrend. Karen Jones, Team Head FICC Technical Analysis Research at Commerzbank, expects the yellow metal to target the $1959/65 region next, with scope to overcome the $2072 2020 peak.

“Gold remains bid, it has recently eroded the 200-day ma, the 55-week ma and the 2020-2021 trendline. We target the $1959/65 November 2020 high and the 2021 high. These guard the $1987/78.6% retracement and the $2072 2020 peak. Longer-term, we believe that this will also be overcome.” 

“Dips lower will ideally be contained by the $1825 six-week uptrend. This guards the 20-day ma at $1779 and while above here the market should continue to maintain upside pressure.” 

“Key support is the 2019-2021 uptrend at $1714 and the $1670.49 June 2020 low.”