US Crude Oil – WTI rises as focus shifts to upcoming API report
- West Texas Intermediate (WTI) edges higher, approaching the $65.00 mark.
- WTI Crude Oil gains are restricted by the 100-day moving average, providing additional resistance at $65.31.
- US Crude Oil inventory data could serve as an additional catalyst for WTI with the weekly API report due at 20.30 GMT.
West Texas Intermediate (WTI) Crude Oil is staging a mild rebound on Tuesday, as traders continue to monitor supply and demand dynamics.
WTI Crude Oil is trading near $65.00, with intraday gains nearing 1% at the time of writing.
As the US Oil benchmark continues to trade within a well-defined range between $64.00 and $65.00, focus turns to the upcoming American Petroleum Institute (API) report.
The API will release its weekly Statistical Bulletin (WBS), providing insight into US crude oil stockpiles. According to FXStreet data, Tuesday’s report is expected to show Oil stockpiles declining by 2.26 M barrels, after a 4.277 M barrel drawdown last week.
Will US Oil inventory data drive WTI out of its current range?
Over the past five weeks, the report has revealed that Crude Oil stockpiles have continued to decline, reflecting rising demand. However, the Israel-Iran conflict, which ignited fears over potential disruptions to the Strait of Hormuz, had been a major contributor to depleting stockpiles.
With easing tensions in the Middle East, the Organization of the Petroleum Exporting Countries and its allies (OPEC+) continue to increase supply, limiting the upside move.
However, even with OPEC+ gradually adding supply, sentiment appears to be stabilizing after last week’s steep 12% slide.
If Tuesday’s data points to a deeper-than-forecast draw, it could signal stronger domestic consumption and offer short-term support as the third quarter begins.
Crude Oil technical analysis: WTI rises toward $65.00
With WTI currently testing the $65.00 psychological level, the 100-day Simple Moving Average (SMA) is providing resistance near $65.31. A move above this level could see the price retest the next round number of $66.00, opening the door for the 50% Fibonacci level of the January-April decline at $67.00.
The Relative Strength Index (RSI) is pointing higher, but remains slightly bearish near 47.
WTI (US Crude) Oil daily chart
If prices fail to hold above $65.00, prices could fall to the 38.2% Fibo level, providing support at $64.18. The June low at $63.73 lies below, a break of which brings the 50-day SMA into play at $63.41.
