West Texas Intermediate (WTI) oil wobbles once again

May 26, 2022 - 1 month ago
Share on twitter
Share on facebook
Share on linkedin
Share on email

West Texas Intermediate (WTI), the benchmark for New York-traded crude oil prices, was little changed after posting a lacklustre performance.

Meanwhile, concerns continue over a possible recession vied with an outlook for higher fuel demand with the upcoming U.S. summer driving season and Shanghai’s plans to reopen after a two-month coronavirus lockdown.

The U.S. Energy Information Administration reported a 1.02 million barrel crude drawdown for the week ended May 20, which came on top of the 3.4-million-barrel draw for the previous week to May 13.

Based on the technical assessment, the Relative Strength Index (RSI) 3-daily ‘lookback’ indicator remains uncertain after it recently buckled; however, it holds positive.

Meanwhile, the Moving Average Convergence Divergence (MACD) oscillator supports a weak positive signal.

As the topside area of $110.80 to $112.00-05 contains the bulls, further downside challenges are anticipated.

A break of $106.40-70 would strengthen the bearish sentiment and reinstate the recent lows with the immediate target at $102.00-35 and then $97.40-80 viewed beneath.

Share on twitter
Share on facebook
Share on linkedin
Share on email