WTI Lacks Any Firm Intraday Direction, Stuck In A Range Below $78.00 Mark Amid Mixed Cues

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West Texas Intermediate (WTI) US Crude Oil prices come under some selling pressure and remain depressed through the first half of the European session on Wednesday. The commodity, however, remains confined in the previous day's broader trading range amid the mixed fundamental cues and manages to hold its neck above mid-$77.00s.

Data from the American Petroleum Institute released on Tuesday showed that inventories in the US shrank by 5.5 million barrels during the week to March 8. Adding to this, the Organization of Petroleum Exporting Countries (OPEC) maintained its forecast that world Oil demand will increase by 2.25 million barrels per day in 2024. This, along with the risk of potential supply shock stemming from conflicts in the Middle East, continues to act as a tailwind for Crude Oil prices.

The upside, however, remains capped in the wake of concerns about a slowdown in China – the world's second-largest economy and top Oil importer. Furthermore, the stronger-than-expected US inflation data fuelled speculations that the Federal Reserve (Fed) may delay interest rate cuts in the near term, which could hamper economic activity and dent Oil demand. This, in turn, is seen as a key factor exerting downward pressure on Crude Oil prices and warrants caution for bulls.

Looking at the broader picture, the black liquid has been oscillating in a familiar range over the past month or so. This points to indecision among traders over the next leg of a directional move, making it prudent to wait for a fresh catalyst before positioning for the near-term trajectory. Market participants now look to the official US inventory data due later this Wednesday, which, along with the USD price dynamics, should provide some impetus to Crude Oil prices.

 

WTI US OIL

OVERVIEW
Today last price 77.59
Today Daily Change -0.16
Today Daily Change % -0.21
Today daily open 77.75

 

TRENDS
Daily SMA20 77.88
Daily SMA50 75.72
Daily SMA100 75.66
Daily SMA200 77.99

 

LEVELS
Previous Daily High 78.37
Previous Daily Low 77.06
Previous Weekly High 80.01
Previous Weekly Low 77.18
Previous Monthly High 79.27
Previous Monthly Low 71.46
Daily Fibonacci 38.2% 77.56
Daily Fibonacci 61.8% 77.87
Daily Pivot Point S1 77.09
Daily Pivot Point S2 76.42
Daily Pivot Point S3 75.78
Daily Pivot Point R1 78.39
Daily Pivot Point R2 79.04
Daily Pivot Point R3 79.7

More By This Author:

EUR/USD Price Analysis: Stuck In A Range Below 100-Hour SMA Pivotal Resistance
WTI Inches Lower To Near $77.70 Despite A Strong OPEC’s Outlook For Global Demand
Oil Price In The Green Ahead Of OPEC Report Release

Disclosure: Information on this article contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes ...

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