WTI consolidates recovery around $ 71.50 before EIA and Fed

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  • WTI clings to recent gains on DXY caution and market sentiment improves.
  • Inventories measured by API in the United States fell 6.1 million barrels last week.
  • The focus remains on the Fed’s decision, the Evergrande situation and the EIA data.

The price of a barrel of WTI (NYMEX futures) entered a phase of consolidation to the upside around $ 71.50 on Wednesday after recovering from six-day lows of $ 69.67 reached a day earlier.

WTI favored by API data and improvement in equities

WTI is trading in the $ 71.60 zone, up 1.55% on the day, supported by the upbeat market mood, courtesy of a relief on fears over China. EvergrandeEspecially after the company announced that its main unit will make the interest payment on Thursday. Furthermore, reports that the Chinese government could take control of Evergrande in an imminent restructuring also boost the best mood.

What’s more, the return of risk appetite dulls the attractiveness of the US dollar, benefiting WTI prices. Markets are also on the defensive ahead of the monetary policy decision of the Federal Reserve, which is estimated to have a broad impact on the markets.

On the fundamental front, a sharp reduction in weekly US crude reserves, according to the American Petroleum Institute (API) report released late Tuesday, also contributes to oil’s bullish tone. The latest API data showed US crude supplies fell by 6.1 million barrels in the week ended September 17. The focus is now on weekly inventory data from the Energy Information Administration (EIA) and the Fed statement.

Technical levels

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