Oil hanging near recent highs, WTI hesitating near $66.50 on US supply figures

Joshua Gibson FXStreet

Crude oil has been working its way steadily higher, but barrels were given reason to pause after US production figures once again set another record.

According to the Energy Information Administration (EIA), US crude production hit a record 10.9 million barrels per day last week, and the US' crude output has lifted by 30% over the last twenty-four months, putting the country on pace to surpass Russia, the world's single largest producer of crude oil, who is estimated to have pumped 11.1 million bpd in the first two weeks of June.

On the flip side of the figures, and possibly supporting WTI prices, US consumption of gasoline also hit a recording high, climbing to 9.88 million bpd last week according to EIA estimates. With the steadily-strengthening crude output from the US, rising consumption is the only thing that will keep another surge of oversupply from spilling into the global marketplace. Crude prices were recently bolstered by Saudi Arabia and Russia publicly mulling over the possibility of reigning in intense OPEC-Russia production cuts, and a wave of US oil at this time could easily see markets flooded with crude once again.

WTI levels to watch

Despite production increases, crude oil is slowly grinding higher as it was supported at the 66.00 level throughout Wednesday before spiking up. The next hurdle to overcome for bulls is 66.85, the May 1 key swing low. If the bulls fail to break above this level we might see a consolidation phase in the coming days with supports seen at the 66.00 figure and 65.56 May 31 low. For now, the momentum remains bullish as Crude oil WTI is currently supported by the daily 100-period simple moving average.

Spot rate: 66.54
Relative change: 0.12%
High: 66.54
Low: 65.39

Trend: Bullish (needs to break 66.85)

Resistance 1: 66.85 May 1 key swing low
Resistance 2: 67.30 supply level
Resistance 3: 68.30 May 31 high

Support 1: 66.56 May 31 low
Support 2: 66.00 key support
Support 3: 64.12-63.72 demand zone

Author

Joshua Gibson

FXStreet

Joshua joins the FXStreet team as an Economics and Finance double major from Vancouver Island University with twelve years' experience as an independent trader focusing on technical analysis.

GBP/USD flirts with two-day lows near 1.3180

GBP/USD remains on the back foot in the latter part of Tuesday’s session, sliding to the sub-1.3200 area and challenging weekly lows. Cable’s decline comes as investors assess the political uncertainty in the UK, coupled with softer-than-expected UK PMI data and the better tone in the Greenback.

EUR/USD weakens below 1.1400 on stronger Dollar

EUR/USD adds to Monday’s losses and recedes below the 1.1400 support to clinch fresh 13-month lows in the latter part of Tuesday’s NA session. The pair’s marked sell-off comes on the back of the persistent move higher in th US Dollar, always propped up by rising bets of further tightening by the Fed.

Gold appears supported near $4,100 for now

Gold rapidly reverses Monday's bounce and is trading sharply lower on Tuesday. The yellow metal, however, manages well to keep business above the $4,100 mark per troy ounce despite a firmer US Dollar and expectations that the Fed will keep rates higher for longer.

Bittensor and Near Protocol Outlook: AI-linked tokens face deeper sell-off

The cryptocurrency market trades amid increasing sell-side pressure on Tuesday, reflecting a broader deterioration in sentiment and appetite for risk assets. Artificial Intelligence (AI)-linked tokens such as Bittensor (TAO) and Near Protocol (NEAR) exhibit both fundamental and technical weaknesses, trading at $217 and $1.99, respectively.

"Rearranging the deckchairs on the Titanic": UK's fiscal crisis outlasts another Prime Minister

Keir Starmer's resignation as the UK Prime Minister comes ten years after the Brexit referendum vote, a coincidence that financial markets have been quick to note. The British Pound trades around 1.3220 against the US Dollar on Thursday.

Regime change: Inside Kevin Warsh's first move to make the Fed unreadable on purpose

The rate did not move. That was the least interesting thing about Kevin Warsh's first meeting in charge of the Fed. The FOMC held its benchmark at 3.50%-3.75% for the fourth straight meeting, exactly as priced, and then the new chair used his first press conference to dismantle the machinery the market has leaned on for a decade.