West Texas Intermediate (WTI) oil retreats from the $84.20-40 level as bearish sentiment takes hold
West Texas Intermediate (WTI) oil prices showed mixed movements on Friday, with lingering tensions in the Middle East and a rebound in the U.S. Dollar following inflation data.
The data didn't significantly boost confidence but didn't dampen it either.
Money markets are now pricing a higher chance of a Federal Reserve rate cut in September.
The Core PCE Index, excluding volatile food and fuel prices, remained at 2.8%, surpassing expectations.
According to Baker Hughes, U.S. energy firms reduced oil rigs by five this week, the largest drop since November.
The total rig count fell by six to 613, the lowest since February 2022.
Technical indicators suggest caution, with the RSI weak, MACD negative, and ADX indicating a ranging market.
Traders should review positions due to high volatility.
Key support levels are $80.50-70 and $79.80-90, while interim resistance is $84.20-40, warranting further assessment.
Daily Chart West Texas Intermediate (WTI)
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