West Texas Intermediate (WTI) oil has remained steady since Tuesday’s rebound, with investors now waiting to see how major producers respond to the emergency crude release by major consuming countries designed to cool off the bullish advance.
On Wednesday, U.S. Energy Information Administration data showed gasoline and distillate stockpiles fell more than expected even as crude stocks rose, suggesting the market needed more crude.
All eyes are now on the Organization of the Petroleum Exporting Countries, Russia, and allies, together called OPEC+, to meet next week to discuss oil demand and supply.
The US Dollar Index, also known as US DXY, measures the greenback’s strength against a basket of six rivals refreshed its 16-month highs to 96.92.
A stronger dollar makes oil more expensive for holders of other currencies, which is expected to weigh crude prices.
Based on the technical study, the RSI has rebounded, while the MACD holds in negative territory.
With the resistance holding at $80.30-40, the downside level at $74.70 will remain vulnerable.
A (New York) close beneath this level would expose an extension to bear decline to $72.00. Reassess from there.