WTI falling back, targetting chart territory below $80 as Crude Oil retreats
|- WTI barrels are retreating into recent lows as global economic data misses the mark.
- US Dollar is seeing lift in the mid-week, further depressing Crude Oil bids.
- Crude Oil is shrugging off a smaller-than-expected increase in EIA Crude stocks.
West Texas Intermediary (WTI) Crude Oil bids are on the backfoot for Wednesday as the US Dollar (USD) finds firm bids across the board, suppressing energy prices. Meanwhile, global economic data continues to miss the mark, pushing back market hopes for increasing Crude Oil demand.
European and Chinese growth continues to lag against market expectations, and stumped demand growth is bleeding across into Crude Oil prices as investors fear a steepening contraction in Crude usage failing to eat up production supply.
Energy Information Administration (EIA) Crude Oil Stocks into the week ending October 27th showed Crude Oil reserves increased at a smaller pace than expected, with EIA stocks increasing but 0.774M barrels against the forecast 1.261M (last 1.371M).
Despite the smaller-than-expected buildup, US Crude reserves are regardless increasing as Crude Oil usage continues to undershoot demand, washing away energy markets' narrative of a drastic undersupply in Crude pipelines.
WTI Technical Outlook
With WTI trading back towards $80.00, bidders will be looking to cut off a retreat below the 200-day Simple Moving Average (SMA) near $78.00.
The top side is capped off by the last swing high just shy of the $90.00 handle, and a lower high pattern is forming up on the daily candlesticks.
WTI Daily Chart
WTI Technical Levels
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