- WTI is rebounding from Tuesday’s losses, climbing nearly 1%.
- Increase in energy prices in the United Kingdom and Europe due to the demand for oil.
- EIA reports: US stocks fell by 4.58 million barrels.
El Western Texas Intermediate (WTI) it is rising in the American session, trading at $ 74.43, up 0.35% at the time of writing. Early in the day, crude oil fell to daily lows around $ 73.56, though it rebounded, cutting Tuesday’s losses.
Skyrocketing electricity and natural gas prices in the UK and Europe benefits the outlook for WTI as people could switch from natural gas to oil. Additionally, power outages in China could drive up prices as US natural gas producers struggle to meet global demand.
On Wednesday, natural gas is losing $ 0.37, trading at $ 5.50. Despite that drop, the price rose around 14% on a weekly basis as investors worry about the increase in supply chains.
US Crude Inventories Fall
Meanwhile, the US Energy Information Administration revealed that US oil reserves decreased by 4.58 million barrels in the week ending September 24. The drop was worse than expected, reducing inventory to 418.5 million barrels.
On Wednesday, OPEC’s Joint Technical Committee (JTC) commented that demand for petroleum products for heating and power generation could increase due to the current crisis in Europe and the UK.
WTI Price Forecast: Technical Outlook
WTI tested on October 5, 2018, with a high of $ 76.80 without success. Despite increased demand, crude oil fell below $ 75.00, consolidating around the 74.00-50 range. A break above $ 75.00 could pave the way for further gains towards another test of multi-year highs.
On the other hand, a failure at $ 75 could cause the price of WTI to go down. The first demand zone would be the September 28 low at $ 74.11, followed by $ 74.00.
The Relative Strength Index is at 64, slightly flat, giving the oil bulls some breathing space on their way to the new yearly highs of 2021.
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