- WTI crude oil bounces 0.75% on Wednesday, negotiating about $ 65.20 after a strong fall of two days.
- The EIA reports a greater fall than expected of 5,836 million barrels in US crude oil inventories.
- The RSI falls to 47, the WTI remains above the key support at $ 64.50, resistance at $ 66.60.
The West Texas Intermediate (WTI) crude oil invests its course during Wednesday’s American session, breaking a loss streak of two days after spending much of the day down. The movement occurred while the operators would digest the decrease in geopolitical tensions between Iran and Israel and the new data of the Energy Information Administration (EIA) that showed a remarkable fall in US oil stocks.
At the time of writing, the WTI quote about $ 65.20, recovering around 0.75% in the day. This occurs after a brutal fall of almost 13% in two days, which was the largest decrease of two days since 2022.
An important factor that supports the rebound in oil prices is the reduction of crude oil and fuels in the US greater than expected. The latest EIA data showed a decrease of 5,836 million barrels for the week that ended on June 21, far exceeding the expectations of a modest fall of 0.6 million barrels. This marks the fifth consecutive weekly fall in the stocks, reinforcing the signals of a hardening of supply conditions in the middle of a constant summer demand.
Geopolitical tensions, another dominant issue for oil operators, went to the background as a tentative fire between Israel and Iran showed signs of staying after a difficult start. While initial violations by both parties had generated doubts, global markets are cautiously hugging a feeling of “appetite for risk”, with Actions firm and oil volatility decreasing.
However, the high fire is still fragile. While US president Donald Trump claimed that recent US missile attacks had “completely annihilated” Iran’s nuclear facilities, intelligence reports suggest that the damage only delayed Tehran’s nuclear program for a few months. The US president Donald Trump has since reiterated that Washington is ready to act again if Tehran resumes his nuclear ambitions.
This complex geopolitical background continues to influence the market feeling. While part of the geopolitical risk premium has been undone, any new outbreak could quickly change the impulse and revive the bullish pressure on oil.
After almost 13% fall in the last two sessions, the crude WTI has found interim support at $ 64.50 – a key horizontal level that acted as resistance since mid -April. The price is trying to stabilize just above this area, currently quoting about $ 65.20.
The relative force index (RSI) has fallen to 47, reflecting a weakening of the impulse without even indicating overall conditions. The price remains close to the Bollinger average band – the 20 -day SMA at $ 66.60 – which now acts as a key resistance.
A rupture below $ 64.50 could expose a decrease towards $ 62.00 and $ 60.00. On the other hand, recovering $ 66.60 would open the door at $ 68.00 and potentially $ 70.00. For now, the WTI remains within a range, with merchants attentive to the next data from the US GDP and PCE to obtain a new address.
WTI FAQS oil
WTI oil is a type of crude oil that is sold in international markets. WTI are the acronym of West Texas Intermediate, one of the three main types that include the Brent and Dubai’s crude. The WTI is also known as “light” and “sweet” by its relatively low gravity and sulfur content, respectively. It is considered high quality oil that is easily refined. It is obtained in the United States and is distributed through the Cushing Center, considered “the crossing of the world.” It is a reference for the oil market and the price of WTI is frequently traded in the media.
Like all assets, supply and demand are the main factors that determine the price of WTI oil. As such, global growth can be a driver of the increase in demand and vice versa in the case of weak global growth. Political instability, wars and sanctions can alter the offer and have an impact on prices. OPEC decisions, a group of large oil -producing countries, is another key price factor. The value of the US dollar influences the price of WTI crude oil, since oil is mainly traded in US dollars, so a weaker dollar can make oil more affordable and vice versa.
Weekly reports on oil inventories published by the American Petroleum Institute (API) and the Energy Information Agency (EIA) influence the price of WTI oil. Changes in inventories reflect the fluctuation of supply and demand. If the data show a decrease in inventories, it can indicate an increase in demand, which would raise the price of oil. An increase in inventories may reflect an increase in supply, which makes prices lower. The API report is published every Tuesday and that of the EIA the next day. Their results are usually similar, with a 1% difference between them 75% of the time. EIA data is considered more reliable, since it is a government agency.
The OPEC (Organization of Petroleum Exporting Countries) is a group of 13 nations oil producing that collectively decide the production quotas of member countries in biannual meetings. Their decisions usually influence WTI oil prices. When OPEC decides to reduce fees, it can restrict the supply and raise oil prices. When OPEC increases production, the opposite effect occurs. The OPEC+ is an expanded group that includes another ten non -members of the OPEC, among which Russia stands out.
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
