Mitrade Insights is dedicated to providing investors with rich, timely and most valuable financial information to help investors grasp the market situation and find timely trading opportunities.

2021

Best News & Analysis Provider

FxDailyInfo

2022

Best Forex Educational Resources Global

International Business Magazine

Insights

News

Commodities

Crude Oil recedes further, WTI falls below $78 on rising supplies and cautious FOMC

Source Fxstreet

WTI declines for a third straight day on Wednesday.
US barrel counts hint at further supply overhang.
FOMC Meeting Minutes reveal cautious Fed, rate hopes stumble.

West Texas Intermediate (WTI) US Crude Oil declined for a third straight day on Wednesday, falling below $78.00 per barrel once again after US Crude Oil barrel counts rose week-on-week after a previous decline. The Federal Reserve’s (Fed) latest Meeting Minutes revealed the Federal Open Market Committee (FOMC) remains stubbornly committed to waiting for firmer signs that US inflation will continue easing towards the Fed’s 2% annual target, vexing rate cut hopes and knocking risk sentiment lower in the midweek market session.

Read more: Fed Minutes leave the door open to a probable rate cut in September

According to the Energy Information Administration (EIA), US Crude Oil Stocks through the week ended May 17, climbing 1.825 million barrels, well above the median market forecast of a -3.1 million barrel decline. The week-on-week EIA barrel count chewed through most of the previous week’s -2.508 million barrel drop, reigniting concerns that US Crude Oil production threatens to swamp demand.

Crude Oil over-production concerns rose further on Wednesday after Russia announced an accidental overproduction of Russian Crude, with the nation pointing a finger at “technical difficulties”. According to sources, Russia’s Energy Minister will be putting options for voluntary output cuts “under review. Russia is expected to present a plan to offset additional production to OPEC , the extended group of associate states aligned with the inner core of the Organization of the Petroleum Exporting Countries (OPEC).

WTI technical outlook

WTI US Crude Oil is testing down into $77.00 per barrel, extending a near-term decline from a recent peak just above $80.00 per barrel. Intraday price action has tumbled back into a familiar demand zone below $78.00 per barrel, and risks further downside if it breaks down below $76.50.

WTI closed in the red for a third consecutive trading day on Wednesday, increasing the odds of an extended technical rejection from the 200-day Exponential Moving Average (EMA) at $79.25.

WTI hourly chart

WTI daily chart

WTI US OIL

Overview
Today last price	77.05
Today Daily Change	-1.08
Today Daily Change %	-1.38
Today daily open	78.13

Trends
Daily SMA20	79.61
Daily SMA50	81.58
Daily SMA100	78.58
Daily SMA200	79.62

Levels
Previous Daily High	79.24
Previous Daily Low	77.62
Previous Weekly High	79.63
Previous Weekly Low	76.38
Previous Monthly High	87.12
Previous Monthly Low	80.62
Daily Fibonacci 38.2%	78.24
Daily Fibonacci 61.8%	78.62
Daily Pivot Point S1	77.42
Daily Pivot Point S2	76.71
Daily Pivot Point S3	75.8
Daily Pivot Point R1	79.04
Daily Pivot Point R2	79.95
Daily Pivot Point R3	80.66

Disclaimer: For information purposes only. Past performance is not indicative of future results.

Recommended Articles

October hike odds climb toward 60% as Goldman and BofA both flip — what Warsh's "dose of accommodation" really changed Rate futures now price roughly 55% to 62% for a 25bp hike at the October 27-28 FOMC, up from about 30% before Chair Warsh's post-meeting framing that the Fed is merely "removing some accommodation." Goldman Sachs has added an October hike to its forecast and Bank of America now sees moves in both October and December. Here is the repricing, the language behind it, and the two data points that decide it.

Author Irene Q.

Sep 23, Wed

Rate futures now price roughly 55% to 62% for a 25bp hike at the October 27-28 FOMC, up from about 30% before Chair Warsh's post-meeting framing that the Fed is merely "removing some accommodation." Goldman Sachs has added an October hike to its forecast and Bank of America now sees moves in both October and December. Here is the repricing, the language behind it, and the two data points that decide it.

Four jobs reports in five days: what JOLTS, ADP, claims and the September payrolls mean for the October Fed decision The US labour market faces its densest data week of the month. JOLTS job openings land Tuesday (7.2 million expected), ADP on Wednesday (70,000 expected), initial claims on Thursday and the September non-farm payrolls on Friday (100,000 expected, down from 162,000). Markets price a 64%-70% chance of another quarter-point Fed hike on October 28. The dollar index sits at 100.77 and the S&P 500 at 7,729.8.

Author Mitrade

Sep 28, Mon

The US labour market faces its densest data week of the month. JOLTS job openings land Tuesday (7.2 million expected), ADP on Wednesday (70,000 expected), initial claims on Thursday and the September non-farm payrolls on Friday (100,000 expected, down from 162,000). Markets price a 64%-70% chance of another quarter-point Fed hike on October 28. The dollar index sits at 100.77 and the S&P 500 at 7,729.8.

Nvidia's $150 billion buyback landed — and the AI sector fell anyway. That's the signal worth trading Nvidia closed up 1.68% at $228.86 on 28 September after announcing a $150 billion share repurchase authorisation, the largest single corporate buyback on record, while the rest of the AI complex sold off: AMD -3.6%, Micron -2.6%, Meta -4.8% and the Philadelphia Semiconductor Index -1.61%. The divergence is not noise. Capital is rotating toward cash-flow certainty, not abandoning the AI theme. With Micron reporting after the close on 30 September, here is what the split means.

Author Irene Q.

Sep 29, Tue

Nvidia closed up 1.68% at $228.86 on 28 September after announcing a $150 billion share repurchase authorisation, the largest single corporate buyback on record, while the rest of the AI complex sold off: AMD -3.6%, Micron -2.6%, Meta -4.8% and the Philadelphia Semiconductor Index -1.61%. The divergence is not noise. Capital is rotating toward cash-flow certainty, not abandoning the AI theme. With Micron reporting after the close on 30 September, here is what the split means.

【Daily Brief】30-year Treasury tops 5.59%, S&P 500 slips to 7,670 and gold holds $4,180 — PCE lands tonight The 30-year Treasury yield closed at 5.59%, its highest since June 2002, and the Dow fell 131.59 points to 51,349.92. US consumer confidence dropped to 81.9, a 12-year low, and JOLTS job openings fell to 7.1 million. August PCE and Q3 GDP both land at 8:30am ET tonight.

Author Suzie

23 hours ago

The 30-year Treasury yield closed at 5.59%, its highest since June 2002, and the Dow fell 131.59 points to 51,349.92. US consumer confidence dropped to 81.9, a 12-year low, and JOLTS job openings fell to 7.1 million. August PCE and Q3 GDP both land at 8:30am ET tonight.

Gold falls to near $4,150 as higher Treasury yields, oil prices outweigh softer PCE inflation Gold price (XAU/USD) tumbles to near $4,150 during the early Asian session on Thursday, pressured by elevated US Treasury bond yields. Traders await the US September employment data for fresh impetus, which will be released later on Friday.

Author FXStreet

5 hours ago

Gold price (XAU/USD) tumbles to near $4,150 during the early Asian session on Thursday, pressured by elevated US Treasury bond yields. Traders await the US September employment data for fresh impetus, which will be released later on Friday.

Related Instrument