- Crude stock data on Tuesday pushed WTI to a two-week high.
- Price encountered resistance at $ 84.50 and failed to sustain above $ 84.00.
- Ahead: US data, plus inventory.
The The price of a barrel of WTI is falling on Wednesday after hitting $ 84.95 earlier, the highest level since October 25. The price retraced and fell to $ 83.55, marking a new low. It is trading just above the daily low, yielding 1%.
The impulse came after the API data, which showed a drop in oil inventories of 2.5 million barrels, Against the expectation of an increase of more than two million. On Wednesday the change in US crude reserves will be released from the Energy Information Agency (EIA).
In the US, important data will be published on Wednesday with the retail inflation report (consensus: + 0.5% rise in the CPI in October) and requests for unemployment benefits. In China, wholesale inflation figures were known that showed the steepest rise in 26 years and higher than expected, at 13.5% per year; the CPI rose to 1.5%.
Crude is in favor of the fall in inventories and the expectation of demand, but at the same time, it is facing the possible release of strategic reserves of US crude due to the increase in the price. In this context, WTI is back in the zone of highs in years. It has a barrier at $ 85.00; Already a confirmation over $ 84.50 would be a positive technical factor, the rejection from this level being a fact that can anticipate a downward correction.
Technical levels
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