Forex Marketz Daily Forex News – Fully Markets Update
Looking at the benchmark U.S. West Texas Intermediate (WTI) crude oil futures contract on the above one hour MT 4 price action chart, price action has been fairly choppy since overnight and into the morning Asian trade session on Thursday.
The WTI crude oil contract is currently trading around the one hundred (100) hour simple moving average (SMA). Price action is still trading below the upside barrier in play at $65 per barrel as well.
Weekly inventory data, out of the United States and released by the US Energy Information Agency (EIA) showed a big build in stock. Inventory in the U.S. rose 13.798 million barrels and gasoline inventory fell 11.869 million barrels. Inventory of distillates also fell. These lose 5.5 million barrels.
These erratic inventory levels are following supply disruptions in Texas after the freezing temperatures and winter weather nearly shut down the state’s power grid. This occurred during the final weeks of February. Oil production in the United States has climbed. This has put pressure on the WTI crude oil future contract. For the week, U.S. oil production climbed 900,000 barrels to 10.9 million barrels per day.
Crude oil traders are also examining the recently passed $1.9 trillion U.S. pandemic fiscal aid stimulus package. President Biden will soon sign it into law and this could help the demand for oil thus supporting price action.
Daily US WTI Crude Oil Technical Analysis
Looking at price action, as mention above, U.S. crude is being capped at $65 per barrel and is around the 100 hour simple moving average.
Overnight, during the North American trade session, oil traded near $65 per falling back lower.
Price action then fell back to challenge the downside barrier in play at $63.50 per barrel. A daily close below $63.50 opens the door to challenge the round $63 per barrel number.
On the upside, a break back above $63.80 per barrel, opens the door for that key upside barrier lining up at $65.
