West Texas Intermediate oil bears cheer as they reach a 6-month low and the objective at $88 a barrel – A neutral outlook is seen (short-term)

August 5, 2022 - 2 weeks ago

West Texas Intermediate (WTI), the New York-traded crude oil benchmark, extended its decline on Thursday, as prices plummeted to their lowest levels since before Russia’s February invasion of Ukraine, as concerns of supply shortage and slower demand linger.

Elsewhere, OPEC+ is set to raise its oil output goal by 100,000 barrels per day in September.

On Wednesday, the U.S. Energy Information Administration reported crude oil inventories have increased by 4.5 million barrels for the week to July 29, confounding expectations for a 629,000 decline.

Based on the technical assessment, the Relative Strength Index (RSI) indicator 3-day ‘lookback’ has rebounded out of the oversold area but remains negative, while the Moving Average Convergence Divergence (MACD) holds a weak negative signal. The ADX indicator supports a bearish trend.

The $88.00 reached now puts a neutral outlook in the short term.