Crude oil retreats after the Fed and WTI falls below $80

• WTI returns below $80 per barrel.
• Crude oil markets unsettled by the Fed's latest interest rate decision.
• Supply continues to exceed demand for crude oil.

On Wednesday, US West Texas Intermediate (WTI) crude oil fell below $80 per barrel, as US crude supply continues to outstrip demand, and the US Federal Reserve (Fed) continues to limp on the path towards lowering interest rates.

While most global markets were focused on the Fed's latest interest rate decision, the Energy Information Administration (EIA) released its latest weekly count of US crude oil barrels. According to the EIA, the number of barrels increased by 7.265 million in the week ending April 26, well below the forecast of -2.3 million and completely surpassing the -6.368 million drop from the previous week.

The increase in barrels recorded by the EIA adds to the figures from the American Petroleum Institute (API) published this week. This week's EIA figure represents the largest crude oil build since the week ending February 9. US crude oil stocks rose by 9.473 million barrels in April, and EIA-reported US crude oil production has been oversupplied by nearly 30 million barrels since the beginning of the year. .

The Fed's latest decision on interest rates kept them stable, as markets expected, but little progress in reducing inflation has undermined the Fed's ability to reduce interest rates, and markets are They will focus on Friday's Non-Farm Payrolls (NFP) labor report to understand the evolution of the US economy.

WTI Technical Outlook

Wednesday's decline dragged WTI below $80.00 per barrel and out of a firm demand zone between $82.00 and $80.00. WTI is not trading within the 200-day EMA near $79.17, and US crude oil is now trading down nearly 10% from the last swing high of $81.25 in early of April.

WTI hourly chart

WTI daily chart