West Texas Intermediate (WTI) prices settled lower amid a jump in US crude supplies
West Texas Intermediate (WTI) prices experienced a sharp decline on Wednesday, influenced by a much larger-than-expected weekly build in U.S. inventories.
Official U.S. inventory data from the Energy Information Administration revealed a 2.7 million barrel increase in weekly crude stockpiles, surpassing economists' forecasts of 1.6 million barrels.
This build followed a 5.8 million barrel rise in the previous week and was primarily driven by U.S. production remaining at record highs, exceeding 13 million barrels per day.
Mixed economic data from China further heightened concerns, compounded by reduced fears about escalating tensions in the Iran-Israel conflict.
Based on technical indicators, further weakness is anticipated due to the negative bias in the RSI 3-day, weak or negative signal in the MACD, and the ADX indicating a ranging market.
Traders should reassess their positions given weak assessment.
With the breach of support at $84.20-25, the next support level is expected to be $81.70-90.
Reevaluation is recommended at that point, with a downward view below $79.45-55.
On the upside, resistance is seen around $83.90.
Daily Chart West Texas Intermediate (WTI)
This content is provided by Australian Financial Services Corporation (AFSC) Pty Ltd (AFSC), trading as Crystal Ball Finance. AFSC is a corporate authorised representative (CAR No. 001275455) of ShareX Pty Ltd (AFSL No. 519872).
For information relating to our financial services, you should refer to our Financial Services Guide.
Crystal Ball Finance content is designed as the opinion only and is general in nature. It does not take account of your objectives, financial situation or needs. Nothing in this content shall be construed as a solicitation to buy or sell any security or product or to engage in or refrain from engaging in any transaction. There are risks involved in any financial investment and trading strategy, and the value of any investment can and does fluctuate and may even become valueless. You should consider the appropriateness of any investment or trading strategy having regard to your circumstances. We recommend that you obtain financial, legal and taxation advice before making any financial investment decision or applying any trading strategy. This content is based on information obtained from sources believed to be reliable, but we do not make any representation or warranty that it is accurate, complete or up to date. We accept no obligation to correct or update the information or opinions in it. Opinions expressed are subject to change without notice. Crystal Ball Finance does not accept any liability whatsoever for any direct, indirect, consequential or other loss arising from any use or application of its content.