- Oil prices accelerate their reversal as US reserves increase more than expected
- Prospects for higher rates for longer raise concerns about lower oil demand
- These fears have offset the impact of geopolitical risks.
Oil prices are experiencing a sharp reversal on Wednesday, to trim some of the gains made over the past three months. WTI crude oil futures plunged on Wednesday after a period of hesitation sparked by the Fed's bullish outlook and larger-than-expected U.S. oil stockpiles.
The EIA weekly report revealed that US oil inventories increased by 2.735 million barrels. in the week of April 12, compared to expectations of 1.65 million, and from 5.841 million barrels the previous week.
This increase in crude oil stocks comes after Fed Chairman Jerome Powell warned that the entity could still have work to do to bring inflation to the 2% target. These comments suggest that interest rates will remain at restrictive levels for longer, which is expected to depress economic growth and dampen oil demand.
This has offset the positive impact on crude oil from rising geopolitical risks and news reports of a US threat to reimpose the ban on Venezuelan oil if President Maduro does not fulfill his commitment to hold fair elections this year.
The overall trend remains bullish, although today's bearish reaction suggests a deeper correction. A confirmation below previous highs at $82.85 puts the $80.50 area in bears' sights. To the upside, the bulls should reclaim the $84.90 level to refocus on the yearly high at $87.60.
WTI US OIL
Overview | |
---|---|
Latest price today | 82.43 |
Today Daily change | -2.35 |
Today's daily change | -2.77 |
Today's daily opening | 84.78 |
Trends | |
---|---|
daily SMA20 | 83.76 |
50 daily SMA | 80.2 |
SMA100 daily | 76.76 |
SMA200 Journal | 79.5 |
Levels | |
---|---|
Previous daily high | 85.67 |
Previous daily low | 84.24 |
Previous weekly high | 87.03 |
Previous weekly low | 84.01 |
Previous Monthly High | 83.05 |
Previous monthly low | 76.5 |
Daily Fibonacci 38.2 | 84.79 |
Fibonacci 61.8% daily | 85.12 |
Daily Pivot Point S1 | 84.12 |
Daily Pivot Point S2 | 83.47 |
Daily Pivot Point S3 | 82.7 |
Daily Pivot Point R1 | 85.55 |
Daily Pivot Point R2 | 86.32 |
Daily Pivot Point R3 | 86.97 |
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.