West Texas Intermediate (WTI), the New York-traded crude oil benchmark, dropped around -4% on Wednesday and booked a six-month low after U.S. data showed crude and gasoline stockpiles unexpectedly surged last week, while OPEC+ said it would raise its oil output target by 100,000 barrels per day (bpd).
U.S. crude oil inventories rose unexpectedly last week as exports fell and refiners lowered runs, while gasoline stocks also posted a surprise build as demand slowed, the Energy Information Administration said.
Meanwhile, Ministers for the Organization of the Petroleum Exporting Countries (OPEC) and allies, including Russia, known as OPEC+, agreed to a small increase to the group’s output target, equal to about 0.1% of global oil demand.
Based on the technical assessment, the Relative Strength Index (RSI) indicator 3-day ‘lookback’ holds a bearish bias, while the Moving Average Convergence Divergence (MACD) holds a weak negative signal. The ADX indicator supports a weak bearish trend.
As the bearish pressure increases, along with the break of $92.20-40, it now reveals the region of $88.00. Reassess from there as a bullish response may be witnessed.
Viewing the topside, the resistance is seen from $95.70-90, with immediate support at $89.80 minor.