WTI Crude Oil Rebounds Over $2 Amid Hurricane Francine Fears
West Texas Intermediate (WTI) crude oil rebounded more than $2 a barrel on Wednesday, fueled by concerns that Hurricane Francine could potentially cause prolonged production shutdowns in the offshore oil sector.
Despite a rise in crude inventories by 833,000 barrels to 419.1 million barrels for the week ending Sept. 6, fears of output disruptions lent support to prices.
The U.S. Bureau of Safety and Environmental Enforcement reported that Hurricane Francine had already impacted about 24% of U.S. Gulf of Mexico crude production and 26% of natural gas output.
In other news, on Wednesday, U.S. inflation data came into focus.
The Consumer Price Index (CPI) annual inflation rate fell to 2.5%, down 0.4 percentage points and below expectations.
However, core CPI, which excludes food and energy, increased by 0.3% monthly and 3.2% annually, surpassing forecasts.
As the U.S. Federal Reserve's meeting approaches, the central bank has indicated a readiness to cut interest rates.
The latest inflation data now suggests a 25-basis-point cut is more likely than the 50-basis-point reduction previously anticipated by investors.
Based on key technical indicators—the 3-day Relative Strength Index (RSI) is negative but has rebounded, the Moving Average Convergence Divergence (MACD) remains negative, and the Average Directional Index (ADX) indicates a bearish trend—further demand is needed to support a recovery towards $69.25-$69.50.
If demand fails to materialise, bearish pressure may drive prices back to $65.50-$66.70, where renewed demand is anticipated.
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.