|

WTI tumbles amid global economic jitters, surging US gasoline inventories

  • WTI experiences a sharp 1.50% drop, extending losses amidst global economic slowdown fears and hedge fund liquidations.
  • OPEC+ maintains current production levels despite the WTI price slide, with no indication of extending cuts into 2024.
  • US business activity decelerates, while the Eurozone economy faces potential contraction in the upcoming quarter, per HCOB PMIs.

West Texas Intermediate (WTI), the US crude oil benchmark, dropped almost 1.50% on Thursday, extending its losses to two straight days amid renewed fears of a global economic slowdown. Even though OPEC+ countries aim to keep a narrow supply, WTI price slides below $83.000 per barrel after hitting a daily high of $84.88.

Oil price slumps below $83, on traders booking profits, OPEC+ decision, economic concerns

On Wednesday, oil prices slid more than $5, according to sources cited by Reuters, due to “heavy hedge fund liquidation on fears that higher interest rates with inflation keep sapping fuel demand.” In the meantime, a sharp jump in gasoline inventories in the US warranting that demand was weak in the last week.

The Organization of Petroleum Exporting Countries and allies – also known as OPEC+, stick to its current oil production, which included recent output cuts of 1.3 million barrels by Saudi Arabia and Russia, extended into the end of 2023. The OPEC+ did not mention if those cuts would be prolonged until 2024.

Regarding the global economic outlook, business activity in the US slowed down, while the Eurozone (EU) economy would likely shrink in the last quarter, according to HCOB’s Services and Composite PMIs.

WTI Price Analysis: Technical outlook

Oil price is dropping below the latest cycle high before WTI reached a year-to-date (YTD) high of $94.99, at around $84.85. In doing so, the 50-day moving average (DMA) was surpassed, putting into play a test of the $80.00 figure. A breach of the latter would expose the 200-DMA at $77.47, which, once cleared, could open the door to test last year’s low of $70.10. Conversely, if oil prices jump above the 50-DMA at $85.03, the following resistance would be the $90.00 mark.

WTI US OIL

Overview
Today last price81.86
Today Daily Change-1.59
Today Daily Change %-1.91
Today daily open83.45
 
Trends
Daily SMA2088.97
Daily SMA5084.57
Daily SMA10078.45
Daily SMA20077.39
 
Levels
Previous Daily High88.51
Previous Daily Low83.18
Previous Weekly High93.98
Previous Weekly Low87.74
Previous Monthly High93.98
Previous Monthly Low83.09
Daily Fibonacci 38.2%85.22
Daily Fibonacci 61.8%86.47
Daily Pivot Point S181.59
Daily Pivot Point S279.72
Daily Pivot Point S376.26
Daily Pivot Point R186.91
Daily Pivot Point R290.38
Daily Pivot Point R392.24

Author

Christian Borjon Valencia

Christian Borjon began his career as a retail trader in 2010, mainly focused on technical analysis and strategies around it. He started as a swing trader, as he used to work in another industry unrelated to the financial markets.

More from Christian Borjon Valencia
Share:

Markets move fast. We move first.

Orange Juice Newsletter brings you expert driven insights - not headlines. Every day on your inbox.

By subscribing you agree to our Terms and conditions.

Editor's Picks

EUR/USD stays bid above 1.1700 as risk flows dominate

EUR/USD posts small gains above 1.1700 in early European trading hours on Monday. The US Dollar remains broadly subdued amid a risk-on market profile, underpinning the pair. 

GBP/USD clings to recovery gains near 1.3400

GBP/USD is clinging to recovery gains near 1.3400 in early Europe on Monday. The pair capitalizes on an upbeat market mood and a steady US Dollar as traders digest the recent

 monetary policy decisions by the Fed and the BoE.

Gold hits fresh record highs above $4,400 amid renewed geopolitical woes

Gold is hitting fresh record highs above $4,400 early Monday, helped by renewed geopolitical tensions. Israel-Iran conflict and US-Venezuela headlines drive investors toward the traditional store of value, Gold. 

Bitcoin, Ethereum and Ripple eye breakout for fresh recovery

Bitcoin, Ethereum, and Ripple are approaching key technical levels at the time of writing on Monday as the broader crypto market stabilizes. Market participants are closely watching whether BTC, ETH, and XRP can sustain breakouts and achieve decisive daily closes above nearby resistance levels, which could signal the start of a short-term recovery.

De-dollarisation by design: Gold’s partner in the new system

You don’t need another 2008 for the system to reset. You just need enough nations to stop settling trade in dollars. And that’s already happening. "If gold is the anchor, what actually moves value in a post-dollar world?” It’s a question most gold investors overlook. We think in terms of storage and preservation, but in the new rails being built, settlement speed matters just as much as soundness of money.

Hyperliquid price forecast: Bullish interest builds amid user recovery

Hyperliquid (HYPE) trades at $25 at press time on Monday, holding the 3% gains from the previous day. The perpetual exchange sees a recovery in active users, while weekly fees collected decline to the lowest level so far this month.