WTI Crude Oil Futures Rebound Despite Concerns Over US Strategic Petroleum Reserve Refill Time

James Hyerczyk
Updated: Mar 24, 2023, 10:16 UTC

WTI crude oil prices firm despite concerns of oversupply.

WTI Crude Oil

In this article:

Key Takeaways

  • WTI crude oil futures rebounded on Friday after earlier losses due to oversupply concerns.
  • US Energy Secretary Jennifer Granholm stated that it may take several years to refill the Strategic Petroleum Reserve (SPR).
  • Despite Thursday’s 1% decline, WTI crude oil prices are expected to show a weekly gain of approximately 3-4%.


U.S. West Texas Intermediate crude oil futures have bounced back from earlier losses on Friday, and are currently showing a slight uptick. The earlier losses were driven by concerns about a possible oversupply in the market. These concerns were sparked by comments from U.S. Energy Secretary Jennifer Granholm, who stated that it may take several years to refill the Strategic Petroleum Reserve (SPR) of the country.

At 07:17 GMT, June WTI crude oil futures are trading $70.39, up $0.27 or +0.39%. On Thursday, the United States Oil Fund ETF (USO) settled at $60.97, down $0.64 or -1.04%.

Despite Thursday’s 1% decline, the U.S. benchmark is expected to make a weekly gain of approximately 3-4%. This rebound follows significant weekly losses attributed to concerns about a potential recession and a crisis in the banking sector.

Oil Prices Drop on Fears of US Not Replenishing Strategic Petroleum Reserve

According to recent reports, Thursday’s sudden reversal was in response to the belief that the United States will not replenish its oil reserve, even if the West Texas Intermediate (WTI) prices reach $67-$72 a barrel.

In October of last year, the White House had announced its plan to buy back oil for the Strategic Petroleum Reserve (SPR) when prices were at or below that range.

However, Energy Secretary Jennifer Granholm has informed lawmakers that adding to the stockpiles may prove challenging this year, as they are currently at their lowest level since 1983 due to President Joe Biden’s direction to sell reserves last year.

Daily June WTI Crude Oil

Daily June WTI Crude Oil Technical Analysis

The main trend is down according to the daily swing chart. However, momentum is trending higher. A trade through $64.58 will signal a resumption of the downtrend. A trade through $80.97 will change the main trend to up.

The minor trend is up. This is controlling the momentum. A trade through $71.79 will reaffirm the minor trend.

On the downside, the closest support is a pair of 50% levels at $68.76 and $68.19. On the upside, the nearest resistance is a 50% level at $71.08, followed by a Fibonacci level at $73.05.

Daily June WTI Crude Oil Technical Forecast

Trader reaction to the pair of 50% levels at $68.76 and $68.19 is likely to determine the direction of the June WTI crude oil market on Friday.

Bullish Scenario

A sustained move over $68.76 will indicate the presence of buyers. If this move creates enough upside momentum then look for a surge into $71.08, followed by the minor top at $71.79 and $73.05.

Bearish Scenario

A sustained move under $68.19 will signal the presence of sellers. This is a potential trigger point for an acceleration to the downside with $64.58 the next major target.

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About the Author

James is a Florida-based technical analyst, market researcher, educator and trader with 35+ years of experience. He is an expert in the area of patterns, price and time analysis as it applies to futures, Forex, and stocks.

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