Crude WTI Oil pares intraday losses above $71.00 zone. Anxiety about the economy, the EIA Crude Oil Inventories Change looked at
Crude WTI Key Considerations
WTI is lower for another straight day, hovering around the intraday bottom.
Slow markets and worries about a financial crisis support the US Dollar’s recovery, while Fed wagers hurt the US dollar.
China trade statistics with opposing predictions for May, risk taking
EIA stocks are being monitored for unambiguous directions while API Oil inventories registered a surprising decline.
Crude is subdued by negative economic reports
Prior to Wednesday’s European trading session, WTI crude oil recovers from the day’s base of $71.25. As a result, the crude oil remains to be negative over the second day in consecutive days. Amid concerns about the economy and the recent rally of the US Dollar.
Latest softer readings from the US, China, and Eurozone raised concerns about a global recession. The earlier economic confidence was also fueled by worries about increasing interest rates by the Bank of Japan. As well as by the hardline actions of the (RBA ) & (RBNZ).
The EIA Inventory Report
Prior to this, an unexpected drop in the weekly stockpiles coincided with Saudi Arabia and OPEC+’s pledge to further reduce oil output. Allowing the price of the crude oil to climb. Nevertheless, compared to the preceding week’s buildup of 5.20 million barrels. The (API) Weekly Crude Oil Inventory decreased by 1.71 million bbls in the week that concluded on June 2.
Additionally, according to Reuters, statements by the US(EIA). Imply that US crude oil output this year will climb quicker and demand rises will slow down in comparison to previous estimates.
Energy traders will likely be interested in the US (EIA) weekly statistics on oil inventories. Despite this, it is anticipated that the nation’s Crude Oil Stocks adjustment would show a decline in stocking build. With a value of 1.5M during the week ending on June 02, compared to 4.488M in earlier data.
Technical Perspective
Oil bears are now targeting the rising support zone that has been in place for an entire month. Which is at a point near $67.85. After WTI crude oil failed to surpass its fifty-day exponential Averages which is located at $73.40.
Futures for crude oil: Additional retracement is possible
According to CME Group’s flash statistics covering crude oil futures exchanges. Investors increased their open interest holdings by roughly 15K contracts on Tuesday. Continuing the rise. On the other side, volume dropped to near 131.3K contracts.
WTI: Retesting $67 might be on the downside.
The correction in WTI values on Tuesday was supported by rising open interest. Suggesting that the commodity may see more losses in the very near future. Nevertheless, there is a chance for oil to retest the bottom from the end of May. Which was around the $67.00 / barrel level.
