|

Oil recovery vanishes, WTI falling back into $47.00

  • WTI turns down once more after very brief recovery.
  • Short-lived bullish bounce strongly implies a lack of market volumes.

Crude barrels tried to stage a recovery from after Tuesday's freefall below the 46.00 handle, but Wednesday's peak at 48.00 sees US crude barrels again struggling, ticking back into 47.15 as energies continue to give up.

According to Xi Jiarui, chief oil analyst at consultancy JLC, “Wednesday’s recovery was short-covering. Investors quickly moved their attention to deteriorating fundamentals in the oil markets including more signs of slowing economic growth next year, record production and the lack of confidence with OPEC’s pledge to curb production.”

With WTI retracting over 30% from October's high, oil's collapse is seeing investors pack up their cash and go home, pulling their money out of the markets and feeding volatility in crude. The only glimmer of hope for crude barrels was US inventories, which showed a surprise drawdown of half a million barrels, though with producing still hitting record levels and OPEC+ unlikely to make an impact, US crude barrels are set to continue slipping.

WTI Technical Levels

WTI

Overview:
    Today Last Price: 47.47
    Today Daily change: 2.0 pips
    Today Daily change %: 0.0421%
    Today Daily Open: 47.45
Trends:
    Previous Daily SMA20: 51.26
    Previous Daily SMA50: 56.92
    Previous Daily SMA100: 63.9
    Previous Daily SMA200: 66.36
Levels:
    Previous Daily High: 48.39
    Previous Daily Low: 46.36
    Previous Weekly High: 53.48
    Previous Weekly Low: 50.57
    Previous Monthly High: 63.92
    Previous Monthly Low: 49.64
    Previous Daily Fibonacci 38.2%: 47.61
    Previous Daily Fibonacci 61.8%: 47.14
    Previous Daily Pivot Point S1: 46.41
    Previous Daily Pivot Point S2: 45.37
    Previous Daily Pivot Point S3: 44.38
    Previous Daily Pivot Point R1: 48.44
    Previous Daily Pivot Point R2: 49.43
    Previous Daily Pivot Point R3: 50.47

Author

Joshua Gibson

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.

More from Joshua Gibson
Share:

Markets move fast. We move first.

Orange Juice Newsletter brings you expert driven insights - not headlines. Every day on your inbox.

By subscribing you agree to our Terms and conditions.

Editor's Picks

EUR/USD flatlines below 1.1800 ahead of Fed Minutes

EUR/USD struggles to find direction and continues to move sideways below 1.1800 for the second consecutive day on Tuesday as markets remain in holiday mood. Later in the American session, the Federal Reserve will publish the minutes of the December policy meeting.

GBP/USD retreats to 1.3500 area following earlier climb

GBP/USD loses its traction and trades flat on the day near 1.3500 after rising to the 1.3530 area early Tuesday. Trading conditions remain thin ahead of the New Year holiday, limiting the pair's volatility. The Fed will publish December meeting minutes in the late American session.

Gold rebounds toward $4,400 following sharp correction

Gold gathers recovery momentum and advances toward $4,400 on Tuesday after losing more than 4% on Monday. Increased margin requirements on gold and silver futures by the Chicago Mercantile Exchange Group, one of the world’s largest trading floors for commodities, prompted widespread profit-taking and portfolio rebalancing.

Tron steadies as Justin Sun invests $18 million in Tron Inc.

Tron (TRX) trades above $0.2800 at press time on Monday, hovering below the 50-day Exponential Moving Average (EMA) at $0.2859.

Economic outlook 2026-2027 in advanced countries: Solidity test

After a year marked by global economic resilience and ending on a note of optimism, 2026 looks promising and could be a year of solid economic performance. In our baseline scenario, we expect most of the supportive factors at work in 2025 to continue to play a role in 2026.

Crypto market outlook for 2026

Year 2025 was volatile, as crypto often is.  Among positive catalysts were favourable regulatory changes in the U.S., rise of Digital Asset Treasuries (DAT), adoption of AI and tokenization of Real-World-Assets (RWA).