Mixed sentiment sees WTI crude ending the day broadly flat; establishes tight $71.82 to $72 range

US crude oil drops from $72.15 to $71.92 per barrel, losing 23 cents (0.32%) today.

Uncertainty around West Texas crude is reflected by published market data as United States ISM Non-Manufacturing PMI (May) came out at 50.3, while a consensus of analysts was expecting 51.8. United States Services PMI released yesterday at 13:45 UTC with a figure of 54.9, while the previous figure was 53.6. Following a previous reading of 0.6%, Factory Orders in United States released yesterday at 14:00 UTC fell short of the 1.1% figure expected by analysts with an actual reading of 0.4%.

Crude Oil made an initial break below its 10 day Simple Moving Average at $71.85, a possible indication of a forthcoming negative trend. West Texas crude's upper Bollinger Band® is at $74.67, suggesting that a downward move may follow. In contrast, WTI crude oil is approaching key support, around $1.21 away from $70.71. Dipping below could indicate further losses are ahead while a failure to break below this level is likely to be seen positively by market bulls.

Despite the market lacking direction, technical chart analysis strongly suggests WTI crude oil is positioned for a downward move in the near term.

Meanwhile, mixed performances are seen in other Energy as Natural Gas rises 1.78% to trade around $2.29.

Furthermore, the market is looking at projections for United States Crude Oil Inventories are set for a continuation of decline with 1.15 million while previous data was 4.49 million; data will be released tomorrow at 14:30 UTC. United States EIA Short-Term Energy Outlook is expected today at 16:00 UTC.

6 days ago, WTI crude oil fell to a low of $68.06 but has since recovered 6%.