West Texas Intermediate (WTI) slides
West Texas Intermediate (WTI), the U.S. crude oil benchmark, saw an early rebound this week but retreated due to unexpected data showing a significant build in U.S. inventories.
Pressure from a strong dollar and upcoming cues on U.S. inflation and interest rates further dampened crude prices from their four-month highs.
The American Petroleum Institute (API) reported a 9.3-million-barrel increase in U.S. oil inventories, contrary to expectations for a draw of 1.2 million barrels.
Official U.S. inventory data, expected later Wednesday, may follow a similar trend.
Eyes now turn to this week’s U.S. Gross Domestic Product Annualized (Q4) on Thursday, with the U.S. February (PCE) data following on Friday, coinciding with the market holiday for Good Friday.
Based on technical analysis, the Relative Strength Index (RSI) has buckled and is negative.
The Moving Average Convergence Divergence (MACD) oscillator is mixed/positive. The ADX (trend) indicator supports a ranging market.
As the focus reverts from the $83 area, traders should reassess at key levels and adjust strategies, considering the potential return of a bearish trend.
However, the near-term support is around $79.80-90; reaching this level could prompt a bullish response.
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.