WTI slips back to 21DMA at $82.50 after less bullish than hoped for US inventory report

WTI prices have slipped in wake of a less bullish than hoped for US crude oil inventory report.
WTI have slipped back to their 21DMA at $82.50.

Joel Frank Independent Analyst

Crude oil prices have turned lower in wake of the latest official weekly US crude oil inventory report. Front-month future prices of the American benchmark for sweet light crude oil, West Texas Intermediary or WTI, has fallen more than $1.0 since the report from above $83.50 to around $82.50, meaning losses on the day currently stand just above 1.0%. For now, WTI seems to be finding some support at its 21-day moving average at $82.50.

The latest crude oil inventory report from the US Department of Energy showed that headline crude oil stocks had risen by just over 1M barrels last week. Some market participants likely expected a draw after Tuesday’s private weekly API inventory data showed US crude oil stocks drawing over 2M barrels. Gasoline and Distillate stocks both saw larger than expected draws of 1.555M and 2.613M barrels respectively.

One factor that might also be weighing on oil prices is a pick-up in the US dollar following a much hotter than expected US Consumer Price Inflation report for October. US yields, particularly in the short-end, are up sharply as market participants upgrade near-term inflation and central bank interest rate forecasts and this is supporting the dollar versus (most of) its G10 peers. A stronger US dollar makes US crude oil (WTI) more expensive to the holders of foreign currencies.

But analysts/key crude oil market participants for the most part remain bullish on crude oil’s near-term prospects. According to Reuters, trading giant, Vitol Group's CEO Russell Hardy said on Tuesday that oil demand had returned to pre-pandemic levels and demand in the Q1 2022 could exceed 2019 levels. Hardy also said that any release of crude oil reserves by the Biden administration to address high energy costs would likely only have a short-term impact on the oil market.

Author

Joel Frank

Independent Analyst

Joel Frank is an economics graduate from the University of Birmingham and has worked as a full-time financial market analyst since 2018, specialising in the coverage of how developments in the global economy impact financial asset

GBP/USD holds recovery gains near 1.3400 despite soft UK CPI data

GBP/USD clings to recovery gains near 1.3400 in European trading on Wednesday. The UK annual Consumer Price Index (CPI) inflation cooled to 2.6% in June against the market forecast of 2.7%, failing to deter the British Pound's rebound from weekly troughs. However, the pair's further upside could be limited by ongoing Mideast tensions and sustained US Dollar demand as a haven.

EUR/USD gains ground above 1.1400 on hawkish ECB tone

The EUR/USD pair holds positive ground near 1.1410 during the early European trading hours, bolstered by a hawkish tone from the European Central Bank. However, the potential upside for the major pair might be limited amid escalating military tensions and recent retaliatory airstrikes between the US and Iran.

Gold: Strong recovery might face roadblock as oil price extends gains

Gold price extends its winning streak for the third trading day on Wednesday, trading 1.5% higher to near $4,140 during the Asian session. The precious metal recovered strongly in the past few trading days from its three-week low of $3,959.80 as traders scaled back Federal Reserve’s interest rate hike expectations for the monetary policy meeting next week.

Bitcoin holds firm as ONDO and GRAM lead rally

The broader cryptocurrency market is witnessing an easing of bearish momentum, with Bitcoin holding above $66,000 on Wednesday. Altcoins including Ondo and Gram, formerly known as Toncoin, are leading gains over the last 24 hours, driven by new features. Bitcoin holds above $66,000 on Wednesday, following a 2% surge the previous day.

Hyperliquid hits a make-or-break zone amid easing demand

Hyperliquid (HYPE) hovers around $60 capped below its 50-day Exponential Moving Average at $62.70. The everything exchange token is losing its retail demand as funding rates fluctuate near zero amid elevated long liquidations.

US Dollar mid-year outlook: Exceptional currency, exceptional risks?

The US Dollar enters the second half of 2026 in a markedly different position from a year ago. The King currency has recovered, reflecting persistent US inflation, changing expectations for Fed policy, geopolitical tensions and renewed demand for defensive assets.