WTI: Sluggish US Dollar, downbeat inventory clues probe Oil buyers above $69.00

WTI crude oil picks up bids to pare intraday losses, the first in three, amid early Wednesday’s sluggish trading. That said, the black gold dropped during the initial hours after downbeat inventory data joined the US Dollar’s corrective bounce and price-negative industry news. However, the greenback’s failure to stay firmer and cautious optimism in the market seem to help the energy benchmark as it prints mild losses near $69.30 at the latest.

On Tuesday, the private Oil inventory data provider American Petroleum Institute (API) showed the Weekly Oil Stock increased by 3.262M for the week ended on March 17 versus 1.155M prior.

Apart from the higher inventory levels, the US Dollar’s corrective bounce, backed by an initial rebound in the US Treasury bond yields, also favored the WTI crude oil sellers after a two-day uptrend.

Furthermore, a lack of impressive news from China President Xi Jinping’s meeting with Russian counterpart Vladimir Putin, despite criticizing the Western helps to Ukraine, seems to exert downside pressure on the Oil price.

Additionally, news from Reuters suggesting optimism in the US oil refining industry also tease the WTI bears. “The US oil refining industry expects to maintain a competitive advantage exporting fuel to Latin America, even though Brazil has started to import more Russian diesel, according to an official at a top US refining lobby,” said Reuters.

Above all, the market’s indecision ahead of the Federal Open Market Committee (FOMC) monetary policy meeting challenges WTI traders. Also important to watch is the weekly Crude Oil inventory data from the US Energy Information Administration (EIA), up for publishing on Wednesday and expected -1.448M versus 1.55M prior.

Technical analysis

December 2022 low near $70.30 precedes a two-week-old descending resistance line, around $71.40, to restrict Crude Oil upside.