The US WTI crude oil benchmark, trades at $77.20 on Friday. WTI prices rise as lower-than-projected American retail sales figures. Which raises hopes that the US Fed would begin decreasing rates of interest in the upcoming months.

Key Points & Considerations

WTI Crude Contracts are influenced by decreasing consumer demand and currency strengthening.
The IEA estimate changes crude demand; American inventories rise.
Recessions worldwide as well as shifts in policy affect the value of oil.

Mild start off Friday’s activity.

WTI crude oil contracts were trading about the same on Friday. While investors examine the effect of the EIA bulletin forecasting slower demand. Investors are going to be examining today’s US PPI data for hints about when to expect of the Fed Reserve’s initial rate rise. The slowed demand is possibly negative, although a quick rate drop might support pricing. This contributes to the earlier indifferent trading we see now.

The IEA Data and Markets Mood.

The EIA study, which cut projected 2024 demand for oil prediction down. Due to a decrease in China’s usage and economic worldwide concerns, has increased market volatility. That differs with OPEC’s more upbeat projection, stressing the challenges of forecasting market developments.

EIA Reports and Storage Unexpected occurrences

The EIA announced a surprise spike in American crude stocks, implying probable surplus and pushing lower the cost of oil. This increase, which can be ascribed to a decrease in refining activity, calls into question the market’s equilibrium.

At this point, escalating international conflicts in the Middle Eastern may raise oil rates as they hamper petroleum shipments. On Wed, Israeli’s conducted large and destructive raids in south of Lebanon. As a reaction to a lethal rocket assault on Israel’s northern border. The Israeli authorities have cautioned that their forces will take significantly heavier attacks in Lebanon if border shooting continues.

The immediate- Term Projection

The outlook for WTI Crude Oil Contracts on today is tentatively bullish. Impacts like a weaker currency and possible Fed rate cuts could boost the price of oil. Nevertheless, concerns such as the IEA’s revised forecast of demand, an increase in American oil stocks. Especially worldwide economic declines have tempered this confidence. The Mid- East regional scenario stays crucial, amid possible supply interruptions impacting rates.

Investors ought to maintain an eye on American economic signs, particularly the coming PPI reveal. In addition to monetary policy changes from the Fed, IEA and OPEC revisions, plus international occurrences in crucial areas. The marketplace’s present situation, driven by shifting demand and supply patterns and worldwide economic factors, necessitates an effective and thorough industry study.

Source: TradingView – Daily Graph

Technical Analysis & Perspective

While mingled the basics appear to be what’s guiding today’s straight trading, The chart details appears positive for bulls. Alongside WTI crude oil Futures contracts poised for an up and spike following creating backing during the week. With the solid end of the 200-day MA on $76.19 mark.

Clearing the current high around $79.01 will prove critical for a prospective rally towards the closest barrier at $82.68 zone. Immediate- Term, expect the upward trend to build on an ongoing move above the pivotal point at $77.43. Should the 200 D-MA misses to provide assistance, rates may fall.

5- Hourly Technical Indicators & Signals