WTI drops to near $73.00 due to builds in US Oil stockpiles

WTI price continues its losing streak as US crude Oil stocks surged by 4.052 million barrels in the last week.
OPEC+ allowed eight member countries to gradually unwound Oil cuts starting in October.
Oil traders monitor the Israel-Hamas situation, as the failure of a peace deal could bolster crude Oil prices.

Akhtar Faruqui FXStreet

West Texas Intermediate (WTI) Oil price has dropped to four-month lows, trading around $73.10 per barrel during the Asian session on Wednesday. The American Petroleum Institute’s (API) Weekly Statistical Bulletin (WSB) reported that crude Oil stocks surged by 4.052 million barrels for the week ending May 31, reversing a prior week's decline of 6.490 million barrels and defying market expectations of a 1.900 million-barrel draw.

Crude Oil prices are being pressured by signs of rising global supplies coupled with an uncertain demand outlook. On Sunday, the Organization of the Petroleum Exporting Countries and its allies (OPEC+) agreed to extend most of their supply cuts into 2025 but allowed for voluntary cuts from eight member countries to be gradually unwound starting in October. By December, more than 500,000 barrels per day (bpd) are expected to re-enter the market, with a total of 1.8 million bpd returning by June 2025, according to Reuters.

In the Middle East on Tuesday, Osama Hamdan, a Hamas official, stated during a televised press conference, as reported by Reuters, that Hamas cannot agree to any deal unless Israel makes a "clear" commitment to a permanent ceasefire and a complete withdrawal from the Gaza Strip.

Qatar, which has been mediating talks between Hamas and Israel alongside the United States and Egypt, has also urged Israel to provide a clear position that is backed by its entire government to facilitate reaching a deal. Oil traders will be closely monitoring further developments, as the failure of a peace deal could lead to an increase in crude Oil prices.

WTI US OIL

Overview
Today last price	73.15
Today Daily Change	0.33
Today Daily Change %	0.45
Today daily open	72.82

Trends
Daily SMA20	77.89
Daily SMA50	80.85
Daily SMA100	79.06
Daily SMA200	79.49

Levels
Previous Daily High	74.03
Previous Daily Low	72.46
Previous Weekly High	80.41
Previous Weekly Low	76.52
Previous Monthly High	81.25
Previous Monthly Low	76.04
Daily Fibonacci 38.2%	73.06
Daily Fibonacci 61.8%	73.43
Daily Pivot Point S1	72.17
Daily Pivot Point S2	71.52
Daily Pivot Point S3	70.59
Daily Pivot Point R1	73.75
Daily Pivot Point R2	74.68
Daily Pivot Point R3	75.33

Author

Akhtar Faruqui

FXStreet

Akhtar Faruqui is a Forex Analyst based in New Delhi, India. With a keen eye for market trends and a passion for dissecting complex financial dynamics, he is dedicated to delivering accurate and insightful Forex news and analysis.

Markets move fast. We move first.

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

Editor's Picks

EUR/USD drops to daily lows near 1.1630

EUR/USD now loses some traction and slips back to the area of daily lows around 1.1630 on the back of a mild bounce in the US Dollar. Fresh US data, including the September PCE inflation numbers and the latest read on December consumer sentiment, didn’t really move the needle, so the pair is still on course to finish the week with a respectable gain.

GBP/USD trims gains, recedes toward 1.3320

GBP/USD is struggling to keep its daily advance, coming under fresh pressure and retreating to the 1.3320 zone following a mild bullish attempt in the Greenback. Even though US consumer sentiment surprised to the upside, the US Dollar isn’t getting much love, as traders are far more interested in what the Fed will say next week.

Gold makes a U-turn, back to $4,200

Gold is now losing the grip and receding to the key $4,200 region per troy ounce following some signs of life in the Greenback and a marked bounce in US Treasury yields across the board. The positive outlook for the precious metal, however, remains underpinned by steady bets for extra easing by the Fed.