The U.S. Energy Information Administration (EIA) reported on Wednesday that crude inventories rose by 3.626 million barrels in the week ended July 30, following a decline of 4.089 million barrels in the previous week. Economists had forecast a draw of 3.102 million barrels.

At the same time, gasoline stocks dropped by 5.292 million barrels, while analysts had expected a fall of 1.780 million barrels. Distillate stocks grew by 0.833 million barrels, while analysts had forecast a draw of 0.543 million barrels.

Meanwhile, oil production in the U.S. remained unchanged at 11.200 million barrels a day.

U.S. crude oil imports averaged 6.4 million barrels per day last week, down by 75,000 barrels per day from the previous week.

FXStreet notes that the Brent crude oil rally has stalled again, with weekly momentum deteriorating sharply. Nonetheless, strategists at Credit Suisse expect the black gold to eventually resume its rise to test the $77.84 at first.

“The deterioration in weekly RSI momentum is now of growing concern, but our bias remains to view consolidation as a temporary pause ahead of an eventual break higher.” 

“A quick move back above $76.38 though is needed to stabilize the market for a test of the $77.84 high. Beyond here can curtail thoughts of a more prolonged correction with resistance seen next at our original bull ‘flag’ target at $79.10, then the ‘measured triangle objective’ at $82.50.”

“Below $71.74 would see bearish pressure start to increase further in line with the momentum picture for a test of the $68.3/67.44 recent low and trend support. Removal of here would warn of a more serious break lower, for a move to $64.57 next, with scope for the 200-day average at $61.65.”

FXStreet reports that economists at ANZ Bank believe gold price (XAU/USD) could see another leg up as key factors are turning in favour of gold investments. Record low US real-yield, inflation, expensive equity valuation and a weaker dollar are likely to encourage strategic allocation in the yellow metal.

“Record low yield again turning in favour of non-yielding gold investment.” 

“Weakness should continue to be a key support for investor demand.” 

“Inflation and weaker USD are supporting central bank gold purchases. Meanwhile, physical demand in India should recover ahead of the festive season.”

“Fading likelihood of monetary tightening looks supportive in the near-term.”