Crude oil prices plunge to a fifteen-month low on increasing supply, as inventories soar at an 18-month peak, but the weekly EIA report states that US stockpiles have increased by 1.55M barrels.
Crude oil dropped by 5% due to growing volume and raised bank fears
WTI (US oil) has fallen under $70 per barrel as a result of the third straight day of drops in crude oil prices. The collapse of SVB and financial instability have added to the recent slump. Which has been masked by dimming growth figures and increasing supply.
Although US regulators have made an effort to allay concerns about a wider banking sector spillover. The financial crisis at the Swiss bank Credit Suisse adds to the danger to the world economy.
Crude oil stockpiles rise, states IEA data
The supply of oil reached an 18-month peak while at the same time, the IEA (International Energy Agency) recorded a rise in oil stockpiles.
These worries were echoed in the weekly EIA report, which showed that US reserves increased by 1.55 million barrels the other week. More than the expected 1.188 million.
U.S. Crude Oil Technical Analysis (WTI)
US Crude (WTI) sustained declines as fundamentals persisted to dampen the mood. Shattering past support (presently resistance) lying at the crucial psychological level of $70.00.
Prices are presently down about 5 percent for the day, and the CCI (commodity channel index) had also entered an oversold zone due to a weekly drop of more than 12 percent.
The 200-week MA (moving average), which acts as support at $66.00, has been approached as a result of the decline.
The swing bottom for WTI crude oil futures from December 20, 2021, which is $66.12, is now within striking range. Continuing a drop below the 2022 low price of $70.08, the low price for today is now $66.40. At $66.47, the price is currently down $4.90, or 6.86%.
Traders would be looking at the early Dec 2021 bottom at $62.43 and the swing low of August 2021 at $62.05.
Key Levels
Support Resistance
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