CRUDE OIL RATING:
- Oil prices trade steadily on Wednesday as investors wait FOMC meeting
- US crude oil stocks fell more than expected last week, highlighting strong demand in North America
- The presence of viral worries may overshadow the outlook for demand the rest from the world
Crude oil prices rose slightly higher by 0.43% at Thursday’s APAC session after the day’s fall. Investors are holding their breath on Wednesday FOMC meeting and Jerome Powell’s press conference hints at Fedi’s narrowing timeline. Any surprise at the meeting could lead to increased market volatility. A strange prejudice may soften the statement US dollar commodity prices, while convex prices may lead to the opposite.
The American Petroleum Institute (API) reported higher-than-expected decline in crude oil and gasoline stocks in the week ending 23 Julyrd, which supports the energy needs of North America. Crude oil stocks fell 4.78 million barrels, compared to an estimated decrease of 3.43 million barrels. Gasoline stocks declined 6.23 million barrels, compared to the construction of 3.31 million barrels last week.
Meanwhile, iinvestors soiled increase in the number of viral cases caused by Delta variant The worldwide distribution of Covid-19 and its consequences for energy needs. In the Asia-Pacific region, Australia extended closures for 4 weeks until 28 Augustth. Singapore returned to the “phase-2 circuit breaker” measures — some type of shutdown — and Japan organizes the Summer Olympics with special restrictions. This could overshadow the prospects for the region’s energy needs.
WTI vs. DOE crude oil reserves total – 12 months
Source: Bloomberg, DailyFX
TechnicallyWTI entered technical withdrawal after reaching a two-and-a-half-year high of $ 76.95 on July 6th (diagram below). Since then, prices have been increasingly low and lower, suggesting that the near-term trend may have fallen. The immediate support level is around the $ 70.84-50-day SMA line. Initial resistance can be found at $ 72.43 – a 20-day SMA line.
The MACD is approaching a neutral line, suggesting that prices may be out of direction in the near term.
WTI crude oil price – Everyday Diagram
– Wrote DailyFX.com strategist Margaret Yang
Use the Comments or section below to contact Margaret @margaretyjy Twitter