• Oil price is oscillating around $80.50 as investors await US GDP for fresh cues.
  • The black gold has not shown any power-pack action despite a smaller-than-expected jump in oil inventories.
  • United States President Joe Biden is considering refilling the Strategic Petroleum Reserve.

West Texas Intermediate (WTI), futures on NYMEX, is displaying back-and-forth moves around $80.50 in the early Asian session. The black gold is displaying a sideways auction as investors are awaiting the release of the United States Gross Domestic Product (GDP) data for fresh impetus. According to the estimates, the US GDP is expected to shrink to 2.8% vs. the prior release of 3.2%.

The declining scale of economic activities indicates the consequences of rising interest rates by the Federal Reserve (Fed). A contraction in economic activities clears that the oil demand is facing pressure, which could hurt the oil prices ahead. On the same note, the chances of a slowdown in the pace of the interest rate hike by the Fed will accelerate as a contraction in economic activities will also strengthen recession fears.

The oil price has not shown a power-pack action despite the release of the lower-than-anticipated increase in the oil inventories reported by the US Energy Information Administration (EIA). For the week ending January 20, the EIA has reported an increase in oil stockpiles by 533,000 barrels vs. the expectations of 971,000 barrels.

Meanwhile, celebrations of the Lunar New Year in China have triggered short-term pain in the oil price. Economic activities have dropped significantly which has trimmed the oil demand and might result in a pile-up of oil inventories.

On the supply front, the United States is considering refilling of the Strategic Petroleum Reserve (SPR). US President Joe Biden exploited the oil reserves in CY2022 to fight rising oil prices, which could result in a fresh rally in the oil price ahead.

WTI US OIL

Overview
Today last price 80.51
Today Daily Change 0.33
Today Daily Change % 0.41
Today daily open 80.18
 
Trends
Daily SMA20 78.4
Daily SMA50 77.95
Daily SMA100 81.7
Daily SMA200 91.73
 
Levels
Previous Daily High 82.29
Previous Daily Low 79.74
Previous Weekly High 82.67
Previous Weekly Low 78.48
Previous Monthly High 83.3
Previous Monthly Low 70.27
Daily Fibonacci 38.2% 80.71
Daily Fibonacci 61.8% 81.32
Daily Pivot Point S1 79.18
Daily Pivot Point S2 78.19
Daily Pivot Point S3 76.63
Daily Pivot Point R1 81.73
Daily Pivot Point R2 83.29
Daily Pivot Point R3 84.28

 

 

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