Crude Oil flattens on Thursday, WTI tests below $78.00

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  • Crude Oil capped after US stocks increase.
  • US PCE print limits risk appetite.
  • Geopolitical headline tension is easing slightly.

West Texas Intermediate (WTI) US Crude Oil traded closely with the $78.00 handle on Thursday as bullish Crude Oil momentum stopped in its tracks as rising US Crude Oil stocks begin to weigh on energy risk appetite. US Personal Consumption Expenditure (PCE) inflation came in at expectations but failed to spark renewed hopes for Federal Reserve (Fed) rate cuts.

US Crude Oil barrel counts from both the Energy Information Administration (EIA) and the American Petroleum Institute (API) this week saw additional Crude Oil reserves added to US supply lines. A steady buildup of barrel counts on the back of record Crude Oil production from the US is limiting upside potential in WTI, which has struggled to hold onto bullish territory after failing to capture the $79.00 handle 

Geopolitical headline pressures from the Middle East have eased as markets await the outcome of renewed negotiations for a ceasefire in the ongoing Gaza conflict between Israel and Palestinian Hamas.

US PCE inflation printed at market expectations on Thursday, but the Fed’s preferred inflation metric still sees inflation too high for the FEd to be pushed into rate cuts sooner rather than later, and broad-market risk appetite eased back in the back half of the trading week.

WTI technical outlook

WTI has been trapped in heavy near-term consolidation, with intraday action cycling between $78.80 and $77.80 heading into the Friday market session.

Near-term technicals continue to find support at the $77.60 level, and the week’s high of $79.27 failed to kick off further gains.

Daily candles are caught in tight churn at the 200-day Simple Moving Average (SMA) as Crude Oil bids pull into the middle of long-term median prices.

WTI hourly chart

WTI daily chart

WTI US OIL

Overview
Today last price 77.86
Today Daily Change -0.25
Today Daily Change % -0.32
Today daily open 78.11
 
Trends
Daily SMA20 76.4
Daily SMA50 74.76
Daily SMA100 76.38
Daily SMA200 77.67
 
Levels
Previous Daily High 79.27
Previous Daily Low 77.52
Previous Weekly High 78.74
Previous Weekly Low 76.22
Previous Monthly High 79.19
Previous Monthly Low 69.41
Daily Fibonacci 38.2% 78.19
Daily Fibonacci 61.8% 78.61
Daily Pivot Point S1 77.33
Daily Pivot Point S2 76.55
Daily Pivot Point S3 75.58
Daily Pivot Point R1 79.08
Daily Pivot Point R2 80.05
Daily Pivot Point R3 80.83

 

 

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