- The WTI remains in a range with prices that quote between the SMA of 20 and 50 days.
- Petroleum remains above $ 62, but a break down could cause a drop around $ 60.
- The impulse stops while traders expect direction of the wider market catalysts.
Crude oil prices remain under pressure on Tuesday, affected by a combination of increased global and persistent economic uncertainty supply.
The West Texas Intermediate (WTI), the referent of the ee.Uu crude oil from Texas and surrounding regions, is currently maintained subdued, quoting within a narrow range of technical confluence while fighting to recover from the wider bearish trend that began after the January opening of the US president Donald Trump.
Although prices are relatively stable today, the winds against prevailing macroeconomics and the continuous pressures on the supply side are limiting the bullish impulse and maintaining a cautious tone in the energy markets.
WTI crude oil is quoted in an adjusted range while the market expects new drivers
WTI crude oil is in a consolidation phase, quoting within a broader range defined by two key levels of fibonacci setback that come from the fall from January to April. This area has created a technical buffer, containing both the upward price action and down while indicating the indecision of the broader market.
As the short -term impulse continues to face resistance, which is being influenced by winds against structural and macroeconomic, simple mobile socks (SMA) of 20 days and 50 days are currently acting as dynamic areas of Support and resistanceeven more compressing the price movement and reinforcing the lack of prevalent directional conviction.
At the time of writing, the WTI continues to remain above the level of psychological support of $ 62.00. However, a decisive breakdown below this threshold could open the path to the fibonacci setback of 23.60% of the movement of the year to date in 60,588 $, which is closely aligned with the 20 -day SMA in 60,644 $. A break in this area could invite a possible renewed sales pressure already a possible 60.00 level test.
From an impulse perspective, the Relative Force Index (RSI) remains slightly above 50’s neutral threshold, indicating a cautious tone in the market while traders expect more clarity of global foundations or geopolitical developments.
If economic conditions are stabilized or oil demand forecasts are strengthened, the WTI could recover up rising impulse, allowing the bullies to point to a new 50 -day SMA test in $ 63,612 and towards the level of fibonacci setback of 38.20% in 64,179 $, an area that marks a critical threshold of short -term resistance.
Daily graphic of crude oil WTI
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.
