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May 24, 2023
West Texas crude trades at $74.1 per barrel after gaining $1.19 (1.63%).
United States Crude Oil Inventories data will be released today at 14:30 UTC, with an expected decline to -920,000.
Meanwhile, United States New Home Sales (Apr) came out at 683,000, while a consensus of analysts was expecting 663,000. United States Services PMI released yesterday at 13:45 UTC with a figure of 55.1, while the previous figure was 53.6. United States Building Permits came out at 1.15 million, while a consensus of analysts was expecting 1.42 million.
Trend-following investors would be interested to note that the Commodity Channel Index (CCI) indicator is above +100, meaning the market price is unusually high compared to the rolling average. Price action overcame a known Fibonacci resistance level at $74.29 by around 19.0001 cents with prices hammering out a $73.52 – $74.47 session range. Asset volatility analysis shows that Bollinger Band® analysis indicates that current price action is approaching the upper band at $74.5, thereby suggesting that US crude oil is becoming overvalued. A study of WTI crude oil's historical price actions shows US crude oil broke through the $74.18 resistance and climbed above it 8 cents; next resistance level is at $75.
All in all, the technical analysis suggests WTI crude has no clear-cut direction.
This rally in WTI crude's price coincides with other Energy as Brent Crude Oil is up 1.46%. Heating Oil goes up 1.18% to trade around $2.39.
Other Energy are showing mixed performance as Natural Gas trades around $2.34, with no major change.
Moreover, macro data could boost sentiment further as United States Pending Home Sales is projected to outperform its last figure with 0.5%. It previously stood at -5.2%; data will be released tomorrow at 14:00 UTC.
Also worthy of note, United States Crude Oil Inventories expected to decline to -920,000 while its preceding data was 5 million, data will be available today at 14:30 UTC. United States Initial Jobless Claims projected to come out at 250,000 — worse than previous data of 242,000; data will be released tomorrow at 12:30 UTC.
Having set a significant low of $68.25 21 days ago, US crude oil is trading 6.83% higher.
