WTI crude oil prices retreat ahead of U.S. inventories, CPI data in focus
West Texas Intermediate (WTI) crude oil prices pulled back and erased earlier gains at the start of the week.
Traders proceeded cautiously ahead of potential market-moving reports, including signs of a potential build in U.S. inventories, anticipation of key Consumer Price Index data, and a significant Federal Reserve publication.
The American Petroleum Institute (API) data revealed a larger-than-expected 3-million-barrel surge in U.S. crude inventories, signalling potential oversupply.
The U.S. Energy Information Administration (EIA) also raised its forecast for U.S. oil production, indicating less tight supplies.
Market participants are closely watching the U.S. Consumer Price Index (CPI) data, which is anticipated to influence interest rate expectations and offer insights into market movement.
An expected slight increase in March inflation could raise concerns about prolonged higher rates by the Federal Reserve, potentially negatively impacting crude markets.
Technical indicators have broken down, with the RSI 3-day showing a negative bias, the MACD is mixed, and the ADX indicates a ranging market.
Traders should reassess positions amidst the pullback.
Immediate support at $84.20-25 could potentially lead to a decline toward $83.70-85.
Re-evaluation is advised at that point.
Daily Chart West Texas Intermediate (WTI)
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