WTI Crude Hits $77.79: U.S. Inventory Drop Fuels Price Surge
In the latest trading session in Asia on Wednesday, oil prices increased, driven by a significant drop in U.S. crude inventories that exceeded market forecasts.
Brent oil futures for August climbed slightly by 0.2% to $82.09 a barrel, while West Texas Intermediate (WTI) futures saw a 0.3% rise to $77.79 a barrel.
This uptick follows reports from the American Petroleum Institute (API) indicating a substantial inventory reduction of 2.4 million barrels last week, surpassing the anticipated 1.8 million barrel draw and marking a reversal from the previous week’s 4 million barrel build.
Anticipation Ahead of Economic Data and Fed Decision
Despite the positive momentum, the gains in oil prices were tempered by market anticipation for upcoming U.S. economic data and a crucial Federal Reserve meeting scheduled later in the day.
The market is especially attentive to the Fed’s stance on interest rates, with expectations leaning towards maintaining the current rates. This scenario is set against a backdrop of sticky inflation and strong labour market data, which might discourage the Fed from reducing rates soon.
Everyone’s waiting for Fed’s stance on the rates, let’s see why lower interest rates could mean a lot for the crypto market.
Most important mechanic to know: lower rates make borrowing cheaper and savings less attractive.
Cheaper money increase market liquidity and drive…
— spiridono (@0xSpiridono) June 12, 2024
Notably, similar restraint has been seen in recent monetary policies by major central banks, including a rate cut by the European Central Bank earlier this month.
Global Demand Outlook and Market Speculations
Oil markets are also closely watching the global demand forecasts by major agencies. The Organization of Petroleum Exporting Countries (OPEC) has reaffirmed its strong demand outlook for 2024, hinting at potential supply deficits in the coming quarters.
Meanwhile, the International Energy Agency (IEA) maintains a more conservative stance on demand projections. This divergence in outlooks could significantly influence market dynamics, especially if the IEA report, expected soon, suggests adjustments to global demand estimates.
Oil 2024 comes out today — offering an outlook for evolving supply & demand trends to 2030.
Tune in to the LIVE launch event with our Executive Director @fbirol & Head of Oil Industry & Markets Division Toril Bosoni
Watch along from 11:00 CEST 👉 https://t.co/2zPmDIMpPo pic.twitter.com/uMDPEo8Qwo
— International Energy Agency (@IEA) June 12, 2024
Given these developments, investors and traders in commodities such as gold and oil should stay alert to the implications of these economic indicators and policy decisions, which could impact not only the prices of these commodities but also broader market sentiment.
This vigilance is particularly relevant given the potential shifts in monetary policy and economic recovery trajectories globally.
WTI Crude Oil Price Forecast: Technical Outlook
USOIL is trading at $78.32, marking an increase of 0.25%. The current pivot point at $77.52 is crucial for today’s trading session. Resistance levels are observed at $78.86, $80.59, and $81.89, indicating potential upper targets should bullish momentum continue.
Conversely, support levels are found at $76.56, $75.64, and $74.47, providing barriers against price drops. Technical indicators signal a bullish outlook. The Relative Strength Index (RSI) is at 69, nearing overbought territory but still suggesting upward price potential.
The 50-day Exponential Moving Average (EMA) at $76.48 supports this bullish sentiment, with current prices trading above it. A drop below the pivot point of $77.50 could trigger a sharp selling trend, so traders should monitor this level closely as a key threshold for maintaining the current bullish stance.
ABOUT THE AUTHOR
See More
Sidebar rates
Related Posts
SaveBest Forex Brokers
| 🥇 |  | Minimum Deposit $100 |  |
| 🥈 |  | Minimum Deposit $5 | |
| 🥉 |  | Minimum Deposit $25 | |
| 4 |  | Minimum Deposit $200 | |
| 5 |  | Minimum Deposit $5 | |
| 6 |  | Minimum Deposit $10 | |
| 7 |  | Minimum Deposit $1 | |
Join 350 000+ traders receiving Free Trading Signals
Alerts
Rates
Calendar
Signals