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June 08, 2023It's been more of the same this session on the back of 4 days of flat trade, Today's session so far looks to be heading in a similar way — a mostly flat day so far for West Texas crude, ranging between $72.29 and $72.54; currently at $72.51 per barrel.
WTI crude's state is reflected by market data as highly important Crude Oil Inventories data from United States beat analyst expectations of 1 million with a reading of -451,000. United States Cushing Crude Oil Inventories released yesterday at 14:30 UTC with a figure of 1.72 million, while the previous figure was 1.63 million. United States Trade Balance (Apr) came out at -74.6 billion, while a consensus of analysts was expecting -75.2 billion.
Crude Oil made an initial break below its 3 day Simple Moving Average at $72.42, a possible indication of a forthcoming negative trend. WTI crude's upper Bollinger Band® is at $74.76, suggesting that a downward move may follow. Despite this, US crude oil is approaching key support, around $1.26 away from $71.25. 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 West Texas crude is positioned for a downward move in the near term.
Meanwhile, mixed performances are seen in other Energy as Heating Oil trades close to $2.41, with no major change.
Data to be released later is expected to clarify investor sentiment while boosting price action volatility as United States Initial Jobless Claims projected to decline to 235,000 while previous data was 232,000; data will be released today at 12:30 UTC.
WTI crude oil has recovered 6.57% since descending to a significant low of $68.06 around 8 days ago.
