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.
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 |
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