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• WTI crude futures dropped to around $73 per barrel amid caution ahead of the US inflation report which could influence the Fed’s interest rate decision. Update: The market trades higher while still down by about 0.3% after the inflation report shows inflation of 4.9% vs 5% YoY.
• US crude inventories unexpectedly rose by 3.618 million barrels last week, according to industry data.
• The Biden administration canceled some previously mandated crude sales from the Strategic Petroleum Reserve, which supported oil prices for a third straight session.
• Analysts suggest that concerns about slowing global growth and elevated global supply were overstated and the market remains supported.

On the daily interval, WTI crude oil futures have seen core buying around the decade’s VWAP. As a result, the market has trended for four consecutive days and tested the Quarter’s lower value extreme for potential selling, while also auctioning back into the Year’s developing value area.

The correlation between crude oil prices and the dollar may be mixed, as the US has recently become a next exporter and trade may be more beneficial with a higher dollar. However, the current market may be pressured while its volatility points to the upside with a positive percentage.

1 Week Ago

During intraday trading, the market found some core buyers around the prior VWAP close level, which closed with a balanced price structure. Therefore, market participants may lean on the balance extremes, currently testing the upper value extreme from yesterday.

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