WTI inches lower to near $77.40 despite a threat of oil supply disruption, Chinese data

WTI price loses ground despite an escalated tension in the Middle East.
US President Joe Biden mentioned a tiered approach to respond to a given situation after an attack on a US post in Jordan.
Chinese Non-Manufacturing and Manufacturing PMI improved to 50.7 and 49.2, respectively in January.
US Weekly Crude Oil Stock data showed a decrease of 2.50M barrels, larger than the expected decrease of 0.867M barrels.

Akhtar Faruqui FXStreet

West Texas Intermediate (WTI) oil price retraces its recent gains despite an escalated situation in the Middle East. The WTI oil price inches lower to near $77.40 per barrel during the Asian session on Wednesday. US President Joe Biden has stated that the United States (US) will respond appropriately to a given situation after an attack on a US post in Jordan, and there is a possibility of a tiered approach which implies a strategy involving different levels or stages of actions.

On the positive side, Iran-aligned Iraqi armed group Kataib Hezbollah, suspected of being involved in the deadly drone attack on US troops near the Jordan-Syria border, has declared the suspension of all its military operations against the US military in the region.

Crude oil prices may experience a positive impact following the recent update on global economic growth by the International Monetary Fund (IMF). The IMF has revised its forecast, indicating expectations of stronger growth, particularly in the economies of the United States and China. Furthermore, the Chinese monthly Non-Manufacturing Purchasing Managers' Index (PMI) indicated an improvement in the performance of China's service sector for January arrived at 50.7, slightly surpassing the expected figure of 50.6. While, the Manufacturing PMI reached 49.2, meeting the anticipated value and advancing from the previous reading of 49.

The American Petroleum Institute (API) released the US Weekly Crude Oil Stock data on Tuesday for the week ending January 26, showing a decrease of 2.50 million barrels. This marks a larger decline than the expected decrease of 0.867 million barrels, and it's an improvement from the previous week's decline of 6.674 million barrels. The Energy Information Administration (EIA) is anticipated to release improved Crude Oil Stocks Change figures on Wednesday. In addition to the oil market indicators, market participants will closely watch the Federal Reserve's (Fed) activities for further insights into the US economic landscape.

WTI US OIL: technical level to watch

Overview
Today last price	77.38
Today Daily Change	-0.36
Today Daily Change %	-0.46
Today daily open	77.74

Trends
Daily SMA20	73.93
Daily SMA50	73.5
Daily SMA100	78.81
Daily SMA200	77.25

Levels
Previous Daily High	78.05
Previous Daily Low	75.81
Previous Weekly High	78.2
Previous Weekly Low	72.55
Previous Monthly High	76.79
Previous Monthly Low	67.97
Daily Fibonacci 38.2%	77.19
Daily Fibonacci 61.8%	76.67
Daily Pivot Point S1	76.35
Daily Pivot Point S2	74.96
Daily Pivot Point S3	74.11
Daily Pivot Point R1	78.59
Daily Pivot Point R2	79.44
Daily Pivot Point R3	80.83

(The story was corrected at 04:30 GMT on Wednesday to say "US post in Jordan" instead of "Jordon" in the first paragraph.)

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.

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