- The WTI extends the withdrawal by $ 38.30, remains greater than 100 SMA days.
- EIA crude stocks, the news about BP’s exit from the Gulf of Mexico does not support energy buyers.
- The recovery of the US dollar and the resetting of market risk are weighing on black gold prices.
The WTI remains slightly heavy around $ 36.74, down 0.46% on a day, while European traders are preparing for Thursday’s session.
Black gold reached its highest level since early March Wednesday but failed to maintain the rise at the end of the day. As a result, it formed a Doji candlestick which suggests the decline in oil prices. While following the same, the benchmark energy index depicts slight losses so far in Asia.
In doing so, the listing also ignores the optimistic details of the Energy Information Administration (EIA) weekly inventory. Official stocks fell 2,077 million barrels compared to 3,038 million barrels during the week ended May 29. In addition, reports that BP is evacuating facilities in the Gulf of Mexico and may adversely affect oil production have also been ignored so far.
The reason could be attributed to the recovery of the US dollar after the several-day trough against a backdrop of risk reset before key events like the ECB and jobless claims in the United States.
It should also be noted that producers of OPEC and non-OPEC countries will likely hold meetings of the Joint Technical Committee (JTC) and the Joint Ministerial Follow-up Committee (JMMC) in mid-June, compared to This week’s previous expectations, according to Reuters.
As a result, oil prices are at the mercy of short-term movements of the greenback while energy market updates may also offer additional clues for further boost.
With the trend reversal suggesting the formation of a candlestick at a multi-day high, coupled with overbought RSI conditions on the daily chart, sellers expect a daily close below the 100-day SMA level of 36, $ 18 for new entries. In doing so, the May 26 summit close to $ 34.91 could become their target. On the upside, a sustained run-up of – $ 38.30 will increase the run-up to close the gap below the March 06 low of $ 41.22.