Crude Oil (WTI) Talking Points
- US Crude oil costs fall to 15-month lows with extra provide driving costs beneath $70 per barrel.
- WTI Crude extends losses, shedding 5% in immediately’s session.
- Oil provide rises to 18-month excessive whereas the weekly EIA report reveals 1.55M barrels added to US stockpiles (greater than the forecasted 1.188M).
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US Crude oil extends sheds 5% – Rising provide and elevated fears of a banking crises drive losses
Crude oil costs are at present dealing with their third-consecutive day of declines, pushing WTI (US oil) beneath $70 per barrel. With diminishing progress forecasts and rising provide overshadowing China’s reopening, the collapse of SVB and monetary instability have contributed to the current droop.
Although US authorities have tried to ease fears over a broader contagion within the banking sector, the monetary turmoil of Swiss financial institution, Credit Suisse poses an extra menace to the worldwide financial system.
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At the identical time, the IEA (International Energy Agency) reported a rise in oil inventories, driving the availability of oil to an 18-month excessive.
The weekly EIA report has echoed these issues, with US stockpiles rising by 1.55M barrels final week, greater than the estimated 1.188M.
DailyFX Economic Calendar
The weekly knowledge was launched by the EIA (Energy Information Administration) earlier immediately, confirmed a rise within the variety of industrial barrels of oil held by US companies.
US Crude Oil (WTI) Technical Analysis
As fundamentals continued to weigh on sentiment, US Crude (WTI) prolonged losses, breaking prior help (now resistance) holding on the key psychological stage of $70.00. With costs at present buying and selling round 5% decrease on the day, a weekly decline of over 12% (on the time of writing) has despatched the CCI (commodity channel index) into oversold territory.
Meanwhile, the downturn has pushed value motion towards the 200-week MA (shifting common), offering help at $66.00.
WTI (CL1) Daily Chart
Chart ready by Tammy Da Costa utilizing Buying and sellingView
WTI Crude Oil Key Levels
| Support | Resistance |
|---|---|
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| Change in | Longs | Shorts | OI |
| Daily | 15% | -17% | 11% |
| Weekly | 52% | -46% | 31% |
— Written by Tammy Da Costa, Analyst for DailyFX.com
Contact and observe Tammy on Twitter: @Tams707
