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June 22, 2023
US crude oil drops from $72.53 to $71.41 per barrel, losing $1.12 (1.54%) today.
United States Initial Jobless Claims data will be released today at 12:30 UTC, with an expected improvement to 260,000. US crude oil reaction to indicator information will follow.
Amid the market gloom, United States API Weekly Crude Oil Stock released yesterday at 20:30 UTC with a figure of -1.25 million, while the previous figure was 1 million. Fresh 20-Year Bond Auction data from United States came out at 4.01.
Crude Oil made an initial break below its 50 day Simple Moving Average at $71.82, a possible indication of a forthcoming negative trend. Bearish sentiment was sufficient to push prices below the known Fib level of $71.48 serving as intraday support. US crude oil's upper Bollinger Band® is at $73.93 which indicates a further downward move may follow. Despite this, US crude oil could begin to recover as it approaches significant support, now 14 cents away from $71.27. Dipping below could be an indication that further losses are ahead.
Overall, the technical analysis landscape suggests that on the balance of probability, West Texas crude is expected to maintain its bearish bias.
Taking a look at other Energy commodities, negative performances are evident as Brent Crude Oil is down $1.18 from the beginning of the session and now trades around $75.94. Heating Oil is down to $2.53, losing 3.23 cents, after closing at $2.56 in the preceding trading session.
In the meantime, Natural Gas trades around $2.62, with no major change.
Looking ahead, ongoing depreciation may be prolonged as today at 15:00 UTC data for United States Crude Oil Inventories will be released, with an expected decline to 1.87 million from the preceding figure of 7.92 million.
In addition, United States Initial Jobless Claims is projected to outperform its last figure with 260,000. It previously stood at 262,000; data will be released today at 12:30 UTC.
Furthermore, United States Services PMI figure is projected at 54. It previously stood at 54.9; data will be released tomorrow at 13:45 UTC.
WTI crude hit a significant low of $67.25 around 10 days ago, but has since recovered 7.85%.
