WTI bulls move in to a key resistance area, correction eyed

WTI is higher by some 2.25% at $74.82 after moving withina range of $73.03 and $74.92. Crude prices rallied Tuesday after China took steps to support the property market by extending loan relief for developers. However, there remains concern about weaker Chinese energy demand. China's National Petroleum Corp (CNPC), China's largest oil and gas producer, cut its 2023 China crude oil demand forecast on June 20 to +3.5% to 740 MMT from a March forecast of +5.1% to 756 MMT.

Elsewhere, energy supply risks are offering support to the market once more as Saudi Arabia rolled over its voluntary production cuts while Russia's decision to curtail exports, as opposed to production, helps alleviate some concern about the nation's undercompliance with the OPEC+ deal, as analysts at TD Secureities explained.

''However, the sharp deterioration in our broad commodity demand indicator, along with market expectations of continued hawkish central bank policy, dented sentiment and maintain a bearish tilt in the market psyche.''

''In this sense WTI crude and Brent crude are still prone to CTA selling below $71.15/bbl and $75.20/bbl respectively,''the analysts stated, ''whereas the bar remains higher to see supportive algorithmic flow.''

WTI techncial analysis

Zoomning in on the 4-hour time frame, there are prospects of a correction from the resistance area to test trendlie support.