- WTI extended its losses to three consecutive days beneath $80.00 a barrel.
- US EIA reported that stockpiles had risen the most since June 2021.
- WTI Price Analysis: Subdued but it remains slightly tilted to the downside.
Western Texas Intermediate (WTI), the US crude oil benchmark, is extending its fall to three straight days of consecutive losses, weighed by crude oil inventories in the United States (US) jumping more than estimates. Speculations of further interest rate hikes by the US Federal Reserve (Fed) bolstered the greenback, a headwind for oil prices. At the time of writing, WTI is trading at $78.40.
WTI is climbing above the 50-day Exponential Moving Average (EMA) even though US crude oil inventories have risen the most since June 2021. The US Energy Information Administration (EIA) agency revealed that crude stockpiles increased by 16.3 million barrels, in the week of February 10, to 471.4 million barrels.
Crude inventories in Cushing, Oklahoma, a delivery hub for futures, jumped by 659K last week, while refinery crude fell by 383K barrels per day. Gasoline inventories advanced by 2.3 million barrels to 241.9 million, exceeding analysts’ estimates of a 1.5 million barrels rise. Distillate inventories which account for diesel and heating oil, dropped by 1.3 million to 119.2 million, vs. expectations for a 400K barrel increase.
Aside from this, US Retail Sales for January smashed expectations and exceeded estimates. Therefore, recent Fed hawkish commentary, following Tuesday’s CPI print and today’s data, sparked speculation that the Federal Reserve would continue to tighten conditions, a tailwind for the greenback.
WTI Technical analysis
Albeit WTI remains neutral to downward biased, it remains consolidated in the $77.30-$80.50 range. The Relative Strength Index (RSI) in the bullish territory is almost flat, portraying oil as rangebound. In contrast, the Rate of Change (RoC) portrays sellers gaining momentum. Therefore, mixed signals suggest caution is warranted.
For WTI to resume its uptrend, it will need to conquer $80.50, which would open the door to test the 100 and 200-day EMAs, each at $81.43 and $85.00. As an alternate scenario, oil prices would resume their downtrend, with a decisive break below $77.00, dragging prices towards the YTD Low at $72.30.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
AUD/USD bounces to 0.6450, shrugs off mixed Australian jobs data
AUD/USD is rebounding to test 0.6450 amid renewed US Dollar weakness in the Asian session on Thursday. The pair reverses mixed Australian employment data-led minor losses, as risk sentiment recovers.
USD/JPY drops to test 154.00 on Japan's intervention warnings
USD/JPY extends losses to test 154.00 in Asian trading on Thursday. The pair is undermined by the latest US Dollar pullback, Japan's FX intervention risks and a softer risk tone. Focus shifts to more Fedspeak and US data.
Gold price finds buyers again near $2,355 as USD licks its wounds
Gold price is attempting a tepid bounce in the Asian session, having found fresh demand near $2,355 once again. Gold price capitalizes on a softer risk tone and an extended weakness in the US Treasury bond yields, despite the recent hawkish Fed commentary.
Manta Network price braces for volatility as $44 million worth of MANTA is due to flood markets
Manta Network price was not spared from the broader market crash instigated by a weakness in the Bitcoin market. While analysts call a bottoming out in the BTC price, the Web3 modular ecosystem token could suffer further impact.
Investors hunkering down
Amidst a relentless cautionary deluge of commentary from global financial leaders gathered at the International Monetary Fund and World Bank Spring meetings in Washington, investors appear to be taking a hiatus after witnessing significant market movements in recent weeks.