West Texas Intermediate (WTI) Oil Prices Settled Flat as Fed Signals Slower Pace of Rate Cuts
West Texas Intermediate (WTI) Oil prices closed flat on Wednesday as U.S. crude inventories declined, and the U.S. Federal Reserve cut interest rates as expected.
However, gains were limited as the Fed signalled a slower pace of rate cuts.
The central bank indicated that, due to stable unemployment and little improvement in inflation, it expects only two quarter-percentage-point rate reductions by the end of 2025.
According to the U.S., crude and distillate stocks fell, while gasoline inventories rose in the week ending December 13.
Based on the technicals, the 3-day Relative Strength Index (RSI) is mixed, while the Moving Average Convergence Divergence (MACD) gives a mixed signal.
The Average Directional Index (ADX) points to a ranging market.
Following the rebound from the $66.60–80 support zone, traders should reassess positions, as a squeeze could lead to increased volatility.
The next key resistance levels are $71.00–$71.50 and $72.30–$72.50.
A move towards these levels may spark further price action, requiring close monitoring of indicators.
If these levels are tested, a strategy reassessment will be needed, particularly if upward momentum continues.
Daily Chart West Texas Intermediate (WTI)
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