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.

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