West Texas Intermediate (WTI) wobbles on surprise rise in U.S. crude stocks

July 21, 2021 - 1 year ago

West Texas Intermediate (WTI), the benchmark for New York-traded crude oil prices, slid further on Tuesday after an industry report showed an unexpected build-up in U.S. oil inventories last week, which heightened worries about a resurgence in COVID-19 Delta variant infections, potentially dampening fuel demand.

According to two market sources, U.S. crude stocks rose by 806,000 barrels for the week that ended July 16, citing American Petroleum Institute figures.

Due Wednesday, the official government inventory report is expected to show weekly U.S. crude supplies declined by about 4.5 million barrels last week.

The Relative Strength Index (RSI) 3-daily ‘lookback’ indicator is negative but in oversold territory, while the Moving Average Convergence Divergence (MACD) supports a negative signal.

The Average Directional Movement Index (ADX) trend indicator is presenting a bearish trend.

It is assessed, much volatility is seen ahead with the downside trajectory located at $62.00-45 a barrel, with $64.20-30 viewed as the first challenge.