- The WTI price proves immediate support in the 50 -day EMA of $ 65.65.
- The 14 -day relative force (RSI) index remains below level 50, indicating that the bassist impulse persists.
- The nine -day EMA at $ 66.39 can act as a main barrier.
The price of oil West Texas Intermediate (WTI) extends its losses per second consecutive session, quoting around $ 65,80 per barrel during the European hours on Tuesday. The technical analysis of the daily chart suggests that the price of precious metal is maintained within a rectangular pattern, indicating a consolidation phase.
The 14 -day relative force (RSI) index remains below level 50, suggesting that there is a bearish trend at stake. In addition, the price of silver is being negotiated below the nine -day exponential mobile average (EMA), indicating a possible weakening of the short -term price impulse.
At the bottom, the price of WTI is testing immediate support in the 50 -day EMA of $ 65.65. A rupture below this level would weaken the impulse of medium -term prices and lead to the price of the WTI to approach the lower rectangle limit around the psychological level of 64.00 $. A rupture below the rectangle would cause the appearance of the bearish trend and exert down the price of oil to navigate the region around the minimum of three months of 55.14 $, recorded on May 5.
The WTI price can find initial resistance around the nine -day EMA at $ 66.39. A rupture above the latter would improve the impulse of short -term prices and support the price of oil to approach the upper limit of the rectangle around $ 68.50. A rupture above the rectangle would lead to an upward trend and support the price of crude oil to prove the maximum of six months of $ 76.74, which was reached on June 23.
WTI: Daily graph
WTI oil – frequent questions
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.
