WTI struggles at weekly top above $78.00 amid joint oil reserve release

WTI fades upside momentum after two-day rebound from monthly low.
Japan tracks US, China to release oil reserves but markets seem unconvinced.
API inventories rose, EIA stockpile data, US calendar eyed for fresh impulse.

Anil Panchal FXStreet

WTI crude oil prices retreat to $78.40 after refreshing the weekly top during early Wednesday.

Announcements by the US, China and Japanese government leaders to use their Strategic Petroleum Reserve (SPR) join downbeat inventory data from industry reports and softer US dollar to challenge the oil traders of late.

US President Joe Biden touted the largest-ever release from the US SPR on Tuesday. Japan tracks the moves and announced plans to auction 4.2 million barrels of oil while China has previously marked the move to tame the inflation pressure, due to the energy prices.

“The United States said on Tuesday it would release millions of barrels of oil from strategic reserves in coordination with China, India, South Korea, Japan and Britain, to try to cool prices after OPEC+ producers repeatedly ignored calls for more crude,” said Reuters.

The weekly oil stockpile data from the American Petroleum Institute (API), 2.037M versus 0.655M prior, also exert downside pressure on the WTI crude oil prices.

It's worth noting that softer yields and the sluggish US Dollar Index (DXY) challenge the bearish bias over the oil prices.

Moving on, multiple US data and the weekly official oil inventories from the US Energy Information Administration (EIA), prior 26B, will be important to watch for immediate direction. Among the other catalysts, October Durable Goods Orders, the second estimate of the Q3 Gross Domestic Product, the latest FOMC Meeting Minutes and October core PCE inflation are the key to follow.

Technical analysis

In addition to a clear rebound from the 100-day EMA level of $74.85, sustained trading beyond 50-day EMA, around $78 by the press time, keeps WTI oil buyers hopeful to aim for the $80.00 psychological magnet.

Additional important levels

Overview
Today last price	78.42
Today Daily Change	-0.17
Today Daily Change %	-0.22%
Today daily open	78.59

Trends
Daily SMA20	80.03
Daily SMA50	78.52
Daily SMA100	73.91
Daily SMA200	69.52

Levels
Previous Daily High	78.7
Previous Daily Low	75.17
Previous Weekly High	80.67
Previous Weekly Low	75
Previous Monthly High	84.98
Previous Monthly Low	74.06
Daily Fibonacci 38.2%	77.35
Daily Fibonacci 61.8%	76.52
Daily Pivot Point S1	76.27
Daily Pivot Point S2	73.95
Daily Pivot Point S3	72.74
Daily Pivot Point R1	79.8
Daily Pivot Point R2	81.02
Daily Pivot Point R3	83.34

Author

Anil Panchal

FXStreet

Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.

British Pound eases to 1.3450 area following downwardly revised Manufacturing PMI data

The British Pound is trimming previous gains against the US Dollar on Monday, returning to the mid-range of the 1.3400s down from fresh seven-week highs, above 1.3500 earlier on the day. Weaker-than-expected UK manufacturing data added pressure on the Pound, which rallied at the Asian session opening, amid news of a halt to the hostilities in Iran.

EUR/USD challenges 1.1500 on Dollar’s recovery

EUR/USD now accelerates its downtrend and comes closer to the 1.1500 level on Monday. The pair’s correction follows the decent improvement in the US Dollar amid solid data US releases and easing concerns on the geopolitical front.

Gold: The $4,000 mark holds the downside for now

Gold adds to Friday’s pullback, although it remains well underpinned by the key $4,000 threshold per troy ounce on Monday. The US Dollar’s inconclusive price action seems enough to cap the yellow metal’s potential upside, although renewed hopes for a US-Iran peace deal and fading expectations of a Fed rate hike could limit the Greenback’s recovery.

Ethereum Price Forecast: BitMine extends share buyback spree, scoops over 10K ETH

Ethereum (ETH) treasury firm BitMine Immersion Technologies (BMNR) continued its share buyback spree last week after repurchasing 4.5 million shares of its common stock. This purchase brings the total stock buyback since July 1 to 16.1 million shares, part of a previously authorized $4 billion repurchase plan.

AI defies the disinflationary playbook: Why lower oil prices might not be enough to cool core inflation

The global economic landscape has been fixated on the Middle East since the US-Iran war started in late February, reacting to significant changes in crude Oil prices and assessing how they could influence inflation dynamics and growth outlook.

9-3: Is the Federal Reserve’s vote tally Warsh's new forward guidance?

The rate did not move. Neither did the statement, and that’s the more interesting fact. Set the July 29 Federal Open Market Committee (FOMC) statement beside the one issued on June 17, and the two documents are identical apart from a single verb and a paragraph at the bottom naming three dissenters.