- WTI crude oil falls to $76.50 per barrel, 2.14%, following a larger-than-expected buildup of crude oil inventories in the United States and record production levels.
- The economic contraction in Japan and negative data from the eurozone raise fears of a possible decline in oil demand.
- Despite bearish pressure, OPEC+ production cuts and positive economic indicators from China support oil prices.
He WTI fell late in the New York session on Wednesday after US data suggested a build in crude oil inventories amid record production and concerns about declining oil demand in Asia. WTI is trading at $76.50 per barrel, losing 2.14% on the day.
WTI price pressured by record US inventory build and weak Asian economic data
Data from the US Energy Information Administration (EIA) revealed an inventory build of 3.6 million barrels, reaching 421.9 million last week. A Reuters poll anticipated a buildup of 1.8 million barrels, although the report suggests a notable buildup of crude oil reserves in the United States.
The data showed that US domestic crude oil production remained at a record 13.2 million barrels per day.
Sources cited by Reuters commented that the increase in oil production in the US is a “headwind for the market, and the US is a problem for OPEC+.” WTI has extended its decline from near its weekly high of $79.72, posting a decline of $3.50, also weighed down by weak economic data from Japan.
Japan’s economy contracted in the third quarter, breaking two consecutive quarters of expansion driven by weakness in exports and domestic consumption.
Although the Organization of the Petroleum Exporting Countries and its allies (OPEC+) have an optimistic outlook for oil demand, recent eurozone data shows negative readings and, along with Japan’s economic contraction, the risk of a decline looms. Of demand.
Therefore, WTI prices would be under pressure, but the commitment of Saudi Arabia and Russia to cut production by 1.3 million barrels by the end of the year cushioned the fall in oil.
The latest data in China painted a more optimistic economic picture, as industrial production grew faster than expected, while retail sales beat estimates.
WTI technical levels
WTI US OIL
|Latest price today||76.53|
|Today Daily variation||-1.64|
|Today’s daily variation||-2.10|
|Today’s daily opening||78.17|
|Previous daily high||79.66|
|Previous daily low||77.75|
|Previous weekly high||82.01|
|Previous weekly low||74.94|
|Previous Monthly High||90.88|
|Previous monthly low||80.52|
|Daily Fibonacci 38.2||78.48|
|Fibonacci 61.8% daily||78.93|
|Daily Pivot Point S1||77.39|
|Daily Pivot Point S2||76.62|
|Daily Pivot Point S3||75.48|
|Daily Pivot Point R1||79.3|
|Daily Pivot Point R2||80.44|
|Daily Pivot Point R3||81.22|
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.