World crude oil prices today WTI cut its biggest daily decline in a week to around $77.50 ahead of the European session on Wednesday as market sentiment improved ahead of key US data and official weekly oil inventory figures. News that could boost the recovery is a possible output cut from major refiners amid concerns about lower demand. However, an unexpected drawdown in oil inventories on Tuesday, according to industry sources from the American Petroleum Institute (API), also supported the recovery in WTI crude. It is worth noting that weekly crude stocks according to API stood at -6.083 million barrels for the week ended April 21, compared to -2.675 million barrels previously. On the other hand, Bloomberg expressed concerns about further oil output cuts from OPEC+ citing declining profits in oil refiners over the past few weeks. It is worth mentioning that positive earnings from Microsoft and Alphabet, along with a warning from US President Joe Biden to use his veto power to avoid a US default, also supported cautious optimism in the market and triggered a corrective bounce in oil prices. On Tuesday, President Biden threatened to veto legislation pushed by Republican House leaders that would provide support for raising the debt ceiling on deep spending cuts, calling it a “reckless attempt to extract extreme concessions as a condition for the United States to simply pay the bills it has already incurred,” according to the Washington Post. Earlier, fresh banking concerns triggered by First Republic Bank (FRB), coupled with talk of a US debt ceiling and mixed US economic data, weighed on market sentiment and lowered WTI crude prices. Looking ahead, WTI crude traders will need to pay attention to the official US crude stockpiles data from the Energy Information Administration (EIA), as well as US Durable Goods Orders for March, which is expected to rise to 0.8% as compared to -1.0% previously, to determine the market direction. Additionally, market risk appetite and US Dollar movements will be crucial for oil traders to watch. Although the 100-DMA level around $76.90 has limited the near-term downside in WTI crude, bulls remain cautious as long as prices remain below the early-month swing low around $79.50. This is a technical analysis of the price movement of WTI crude oil.

 

Also Read : Global Demand Rises 2 Million BPD, Oil Prices Soar


Warning!

This analysis is based on fundamental and technical views from trusted sources, not advice or invitation. Always remember that this content is intended to enrich the reader's information. Always use independent research first regarding other forex information to be used as a reference in your trading.

 

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