WTI extends its downside below $82.50 on crude inventory build

FXStreet
Updated Apr 18, 2024 06:53
Mitrade

■WTI trades in negative territory for the third consecutive day near $82.25 on Thursday. 


A rise in US crude inventory and a higher possibility of delay rate cuts from the Fed drag the black gold lower. 


Oil traders will monitor the development surrounding Middle East geopolitical tensions. 


Western Texas Intermediate (WTI), the US crude oil benchmark, is trading around $82.25 on Thursday. The black gold edges lower on the day due to a rise in US crude inventory and the expectation of delay rate cuts from the Federal Reserve (Fed). However, the escalating geopolitical tensions in the Middle East might limit the black gold’s downside. 

US crude oil stocks rose for a fourth straight week. Crude oil stockpiles in the United States for the week ending April 12 rose by 2.735 million barrels from a build of 5.841 million barrels in the previous week. The market consensus estimated that stocks would increase by 1.6 million barrels, according to the Energy Information Administration on Wednesday. 

Furthermore, several Fed officials delivered hawkish comments, which provided support to the US Dollar (USD) and dragged the USD-denominated WTI prices lower. Late Wednesday, Fed Cleveland President Loretta Mester said that inflation is higher than expected and the central bank needs more confidence in its trajectory. Meanwhile, Fed Chair Jerome Powell emphasized that he will wait longer than previously expected to cut rates after unexpectedly upside inflation data, adding that the US central bank will likely take more time to gain confidence that inflation is headed toward the Fed’s 2% target before lowering borrowing costs.

The risk of escalation in the Middle East appears to be limited for the time being. However, oil traders will keep an eye on Israel, and their response, especially after US President Joe Biden urged restraint and after Iran said they do not intend to continue strikes. Wider conflict in the Middle East might disrupt the oil supply and lift WTI prices. 


WTI US OIL


Overview

Today last price

82.28

Today Daily Change

-0.04

Today Daily Change %

-0.05

Today daily open

82.32

 


Trends

Daily SMA20

83.75

Daily SMA50

80.38

Daily SMA100

76.82

Daily SMA200

79.54

 


Levels

Previous Daily High

84.97

Previous Daily Low

82.01

Previous Weekly High

87.03

Previous Weekly Low

84.01

Previous Monthly High

83.05

Previous Monthly Low

76.5

Daily Fibonacci 38.2%

83.14

Daily Fibonacci 61.8%

83.84

Daily Pivot Point S1

81.23

Daily Pivot Point S2

80.15

Daily Pivot Point S3

78.28

Daily Pivot Point R1

84.19

Daily Pivot Point R2

86.06

Daily Pivot Point R3

87.14



 

* The content presented above, whether from a third party or not, is considered as general advice only.  This article should not be construed as containing investment advice, investment recommendations, an offer of or solicitation for any transactions in financial instruments.

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