Forex Marketz Daily Forex News – Fully Markets Update
The U.S. West Texas intermediate (WTI) crude oil futures contract has fallen lower during the Asian trade session towards $65.70 per barrel.
There are a number of factors impacting price action with the U.S. WTI crude oil contract. The biggest being the reopening of Colonial pipeline. The company has said that it will take “several days for the fuel delivery supply chain to return to normal.”
Also, from the American Petroleum Institute (API), saw a weekly drawdown of crude stockpiles in the United States.
Crude oil traders are monitoring rising tensions in the Middle East which effect supply. The conflict between Israel and the Hamas terrorist group is intensifying. This threatens a key supply artery for oil in the region.
As far as economic data is concerned, the United States is releasing weekly natural gas inventory. The U.S. labor Department is publishing weekly initial and continuing jobless claims. Monthly U.S. producer prices will also be of interest. The United Kingdom will publish monthly housing prices. Today is Ascension Day in the euro area.
After the monthly U.S. consumer price index soared higher, the U.S. dollar index surged. A higher greenback weakens commodity prices including the WTI crude oil futures contract. The Federal Reserve has no plans anytime soon to change their ultra-accommodative monetary policy anytime soon. They have pledged to meet a sustainable two percent inflation target as well as full employment.
Daily WTI Crude Oil Technical Analysis
Looking at price action on the above four hour MT 4 price action chart, the technical indicators are sloping lower and below their mid-points. Price action has also failed to close above $66.30 per barrel which puts the downside barrier lining up at $65 per barrel into focus.
A daily close below $65 opens the door to challenge the technical support in play at $64.27 per barrier with the next downside barrier lining up at $63.10 per barrel.
On the upside, a daily close above $66.05 per barrel opens the door to challenge $66.30 again. The next upside barrier is in play at $66.65 per barrel with $67.80 then coming into focus.
