West Texas Intermediate (WTI) oil prices revisit their recent highs posted seven years around the $80-$82 a barrel on Thursday as prices came under pressure early when China, the world’s biggest crude importer, released data showing September imports fell 15% from a year earlier.
Meanwhile, U.S. crude inventories increased by 5.2 million barrels for the week ended Oct. 8.
That compared with a build of 951,000 barrels reported by the API for the previous week.
The API also showed that gasoline inventories fell by about 4.6 million last week, and distillate stocks declined by about 2.7 million barrels.
Elsewhere, Russian President Vladimir Putin said oil prices could reach $100 a barrel and noted Moscow was ready to provide more natural gas to Europe if requested.
Based on the daily technical chart, the Relative Strength Index (RSI) 3-daily ‘lookback’ indicator supports bearish divergence as the indicator eases lower away from the overbought zone while prices attempt to push higher.
Meanwhile, the Moving Average Convergence Divergence (MACD) remains a positive signal but declining.
Although the view is neutral, a close under $78.60-70 should seal the bearish fate towards the $74.60-$75.10 region.
Little resistance is assessed until $90.00-$92.00 a barrel.