WTI extends losses nearing $82.00 on higher oil stocks and lower demand concerns

Source Fxstreet
  • Oil prices accelerate their reversal as US stocks increase beyond expectations
  • The outlook of higher rates for a longer time is increasing concerns about a lower demand for oil
  • These fears have offset the impact of geopolitical risks.

Oil prices are going through a sharp reversal on Wednesday, to pare some of the gains taken over the last tree months. WTI crude futures broke lower on Wednesday after a period of hesitation hammered by the higher-for-longer Fed outlook coupled with larger-than-expected US oil stocks.

The weekly EIA report revealed that US Oil stocks increased by  2.735 million barrels. in the week of April 12, against expectations of 1.65 million, and from the 5,841 million barrels reported in the previous week.

This increase in crude stocks comes after Fed Chair, Jerome Powell, warned that the bank might still have work to do to bring inflation to the 2% target. These comments suggest that interest rates will remain at restrictive levels for a longer time, which is expected to depress economic growth and weigh on demand for Oil.

This has offset the positive impact on Crude from the increasing geopolitical risks and from news reporting a US threat to reimpose the ban on Venezuelan Oil if President Maduro fails to meet his commitment to fair elections this year.

The broader trend remains bullish although today’s bearish reaction is suggesting a deeper correction. A confirmation below previous highs at $82.85 puts the $80.50 area on the bears’ focus. On the upside, bulls should regain the $84.90 level to shift the focus back toward the YTD high, at $87.60.

WTI US OIL

Overview
Today last price 82.43
Today Daily Change -2.35
Today Daily Change % -2.77
Today daily open 84.78
 
Trends
Daily SMA20 83.76
Daily SMA50 80.2
Daily SMA100 76.76
Daily SMA200 79.5
 
Levels
Previous Daily High 85.67
Previous Daily Low 84.24
Previous Weekly High 87.03
Previous Weekly Low 84.01
Previous Monthly High 83.05
Previous Monthly Low 76.5
Daily Fibonacci 38.2% 84.79
Daily Fibonacci 61.8% 85.12
Daily Pivot Point S1 84.12
Daily Pivot Point S2 83.47
Daily Pivot Point S3 82.7
Daily Pivot Point R1 85.55
Daily Pivot Point R2 86.32
Daily Pivot Point R3 86.97

 

 

Disclaimer: For information purposes only. Past performance is not indicative of future results.
placeholder
Fed hike odds near 90% into Wednesday's decision — how to trade the dollar, gold and the S&P 500A 0.3% monthly core CPI print has lifted the market-implied probability of a 25bp Fed hike on 16 September to roughly 86.5% ~ 90%, which would be the first increase since July 2023. Here is the decision timeline, the pricing versus the forecasts, both scenarios, and the key levels for the dollar, gold and the S&P 500.
Author  Suzie
Sep 14, Mon
A 0.3% monthly core CPI print has lifted the market-implied probability of a 25bp Fed hike on 16 September to roughly 86.5% ~ 90%, which would be the first increase since July 2023. Here is the decision timeline, the pricing versus the forecasts, both scenarios, and the key levels for the dollar, gold and the S&P 500.
placeholder
【Daily Brief】10-year Treasury yield briefly tops 5%, S&P 500 slips to 7,602 and the dollar firms at 99.3 as the Fed's decision eve beginsThe 10-year Treasury yield touched 5.014% on Monday — its first print above 5% since October 2023 — while the S&P 500 closed 0.48% lower at 7,619.98 and the dollar index firmed to 99.3. Here is the full market wrap ahead of Wednesday's FOMC decision, the dot plot and the August retail sales report, plus today's CLARITY Act Senate vote.
Author  Irene Q.
Sep 15, Tue
The 10-year Treasury yield touched 5.014% on Monday — its first print above 5% since October 2023 — while the S&P 500 closed 0.48% lower at 7,619.98 and the dollar index firmed to 99.3. Here is the full market wrap ahead of Wednesday's FOMC decision, the dot plot and the August retail sales report, plus today's CLARITY Act Senate vote.
placeholder
Silver breaks $64 as precious metals rebound — can gold hold the $4,280 line into the Fed decision?Silver has climbed back above $64 an ounce for the first time this week, leading a broad rebound across precious metals hours before the Federal Reserve delivers what is expected to be its first rate hike since 2023. Spot silver was last at $64.64, up 1.49% on the day, while gold reclaimed $4,300 and platinum and palladium both advanced. The question now is whether the bounce is a genuine turn — or a pause before the Fed's dot plot decides the next move.
Author  Suzie
Yesterday 08: 40
Silver has climbed back above $64 an ounce for the first time this week, leading a broad rebound across precious metals hours before the Federal Reserve delivers what is expected to be its first rate hike since 2023. Spot silver was last at $64.64, up 1.49% on the day, while gold reclaimed $4,300 and platinum and palladium both advanced. The question now is whether the bounce is a genuine turn — or a pause before the Fed's dot plot decides the next move.
placeholder
Dow drops 631 points as the Fed hikes — but futures are rebounding: what's next for US stocks?The Dow fell 631 points and the S&P 500 closed below 7,600 after the Fed hiked rates for the first time since 2023, with the dot plot showing 16 of 18 officials expect more tightening. Asia-session futures are already recovering — here are the levels and analyst views that decide whether 7,500 holds.
Author  Irene Q.
12 hours ago
The Dow fell 631 points and the S&P 500 closed below 7,600 after the Fed hiked rates for the first time since 2023, with the dot plot showing 16 of 18 officials expect more tightening. Asia-session futures are already recovering — here are the levels and analyst views that decide whether 7,500 holds.
placeholder
Dollar index tops 100 for the first time since July as the Fed's hawkish dot plot sinks inThe U.S. dollar index broke back above 100 for the first time since 31 July after the Fed delivered its first rate hike since 2023, with the dot plot showing 16 of 18 officials expect at least one more increase this year. Here are the levels that matter for DXY, the currencies feeling it most, and what to watch next.
Author  Irene Q.
12 hours ago
The U.S. dollar index broke back above 100 for the first time since 31 July after the Fed delivered its first rate hike since 2023, with the dot plot showing 16 of 18 officials expect at least one more increase this year. Here are the levels that matter for DXY, the currencies feeling it most, and what to watch next.
goTop
quote