FXEMPIRE
All
Ad
Corona Virus
Stay Safe, FollowGuidance
World
61,308,613Confirmed
1,437,840Deaths
42,396,651Recovered
Fetching Location Data…
Advertisement
Advertisement
James Hyerczyk
WTI Crude Oil

U.S. West Texas Intermediate crude oil futures are trading higher at the mid-session after trading flat shortly after the opening. The market was supported earlier in the session by Tuesday’s bigger-than-expected drop in crude oil and gasoline inventories as reported by the American Petroleum institute (API).

Prices rose shortly after the regular session opening in reaction to higher than expected U.S. consumer inflation numbers, but traders showed little reaction to the government inventories numbers, which essentially reaffirmed the API data.

At 15:46 GMT, September WTI crude oil is trading $42.41, up $0.80 or +2.16% and December Brent crude oil is at $45.86, up $0.75 or +1.64%.

U.S. consumer inflation and core consumer inflation reportedly rose 0.6%, both beating the forecast. Meanwhile, according to the Energy Information Administration (EIA), crude inventories fell by 4.5 million barrels in the week-ending August 7 to 514.1 million barrels, compared with analysts’ expectations for a 2.9 million-barrel decline.

U.S. gasoline stocks fell by 700,000 barrels to 247.08 million barrels, the EIA said, compared with analysts’ expectations for a 0.7 million-barrel decline. Distillate stockpiles, which include diesel and heating oil, fell by 2.3 million barrels to 177.66 million barrels, versus expectations for a 0.4 million-barrel rise, the EIA data showed.

Daily September WTI Crude Oil

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. A trade through $43.52 will signal a resumption of the uptrend. The main trend will change to down on a move through the nearest swing bottom at $38.72.

The minor trend is also up. A trade through $41.06 will change the main trend to down. This will also shift momentum to the downside.

The minor range is $43.52 to $41.06. Its 50% level at $42.29 is new support.

The major support remains the long-term 50% level at $41.72.

The short-term range is $38.72 to $43.52. Its 50% level at $41.12 is also support. It essentially stopped the selling at $41.06 on August 7.

Advertisement

Short-Term Outlook

The key level to watch is the long-term 50% price at $41.72. Holding above this level will signal the presence of strong buyers. If traders can create a support base above this level then eventually it should create the upside momentum needed to challenge the Fibonacci level at $46.37.

Even if there is a struggle at $41.72, there is still backup support at $41.12.

Holding above the minor pivot at $42.29 into the close today will also indicate the presence of strong buyers.

For a look at all of today’s economic events, check out our economic calendar.
Don't miss a thing!
Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Trade With A Regulated Broker

  • Your capital is at risk
IMPORTANT DISCLAIMERS
The content provided on the website includes general news and publications, our personal analysis and opinions, and contents provided by third parties, which are intended for educational and research purposes only. It does not constitute, and should not be read as, any recommendation or advice to take any action whatsoever, including to make any investment or buy any product. When making any financial decision, you should perform your own due diligence checks, apply your own discretion and consult your competent advisors. The content of the website is not personally directed to you, and we does not take into account your financial situation or needs.The information contained in this website is not necessarily provided in real-time nor is it necessarily accurate. Prices provided herein may be provided by market makers and not by exchanges.Any trading or other financial decision you make shall be at your full responsibility, and you must not rely on any information provided through the website. FX Empire does not provide any warranty regarding any of the information contained in the website, and shall bear no responsibility for any trading losses you might incur as a result of using any information contained in the website.The website may include advertisements and other promotional contents, and FX Empire may receive compensation from third parties in connection with the content. FX Empire does not endorse any third party or recommends using any third party's services, and does not assume responsibility for your use of any such third party's website or services.FX Empire and its employees, officers, subsidiaries and associates, are not liable nor shall they be held liable for any loss or damage resulting from your use of the website or reliance on the information provided on this website.
RISK DISCLAIMER
This website includes information about cryptocurrencies, contracts for difference (CFDs) and other financial instruments, and about brokers, exchanges and other entities trading in such instruments. Both cryptocurrencies and CFDs are complex instruments and come with a high risk of losing money. You should carefully consider whether you understand how these instruments work and whether you can afford to take the high risk of losing your money.FX Empire encourages you to perform your own research before making any investment decision, and to avoid investing in any financial instrument which you do not fully understand how it works and what are the risks involved.
FOLLOW US