WTI Crude Oil at $76.98 Amid Fed’s Hawkish Stance and Rising US Inventories

WTI Crude Oil (USOIL) is trading at $76.98, up 0.10%. Oil prices have eased for a fourth straight day amid concerns that the Federal Reserve might raise borrowing costs if inflation surges.

Minutes from the Fed’s last policy meeting suggest maintaining current rates but leaving room for further hikes if inflation risks materialize. This has dampened economic growth and oil demand outlook.

US Crude Inventory Rise

Adding to the pressure, US crude stocks rose by 1.8 million barrels last week, as reported by the Energy Information Administration, compared to an expected 2.5-million-barrel draw. This increase in inventory has weighed on USOIL prices.

OPEC+ Production Dynamics

Global physical crude markets have also been affected by soft refinery demand and ample supply. Russia exceeded its OPEC+ production quota in April for “technical reasons” and plans to present a compensation plan to OPEC. Citi Research expects OPEC+ to maintain production cuts through Q3 2024, with Brent averaging $86 per barrel in Q2 2024.

WTI Crude Oil Price Forecast: Technical Analysis

WTI Crude Oil (CFDs) is trading at $76.98, up 0.10%. The 4-hour chart shows a pivot point at $76.68 (green line). Immediate resistance levels are at $77.47, $78.35, and $79.02, while support levels are at $76.68, $76.04, and $75.46.

The RSI is at 31.43, indicating oversold conditions, which may lead to a bullish bounce off the $76.65 level. The 50 EMA stands at $78.58, acting as dynamic resistance.

A recent downward trend suggests selling pressure, but the oversold RSI could halt this trend and drive a rebound. A buy entry is recommended above $76.65, with a take profit target at $77.50 and a stop loss at $76.00.

ABOUT THE AUTHOR See More

Arslan Butt

Index & Commodity Analyst

Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics.His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker.His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.

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