WTI oil prices mixed as demand concerns outweigh Middle East supply fears
West Texas Intermediate (WTI) crude prices fluctuate as economic headwinds weigh on investor sentiment, tempering gains from geopolitical tensions and absorbing hawkish comments from Fed Powell.
Powell's remarks indicated that the Federal Reserve may require more time to be confident about inflation reaching 2%, given recent stronger-than-expected inflation data.
Additionally, U.S. crude oil inventories rose last week, surpassing analysts' expectations, although gasoline and distillates stockpiles declined, according to sources citing American Petroleum Institute figures.
Official data from the Energy Information Administration is awaited on Wednesday.
With technical indicators showing softness, including a negative bias in the RSI 3-day, weak/negative signal in the MACD, and the ADX indicating a ranging market, traders should reconsider their positions amid mixed price action risks.
Immediate support is observed at $84.20-25, potentially leading to a decline toward $83.70-85.
Re-evaluation is recommended at that point. On the upside, resistance is seen around $86.60-70.
Daily Chart West Texas Intermediate (WTI)
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