- WTI fell back into familiar lows on Tuesday before a late-day jump.
- API barrel counts fell back further than expected.
- Broad-market sentiment is struggling under the weight of higher-for-longer Fed rates.
West Texas Intermediate (WTI) US Crude Oil fell to $77.30 on Tuesday as market sentiment regarding Federal Reserve (Fed) interest rate cut expectations begins to crumble, but a late-day Crude Oil supply update from the American Petroleum Institute (API) helped to bolster barrel bids.
According to barrel counts from the API, Weekly Crude Oil Stocks for the week ended May 10 fell much more than expected. US Crude Oil Stocks tracked by the API recorded a -3.104 million barrel drawdown, well below the forecast -1.35 million barrel decline and entirely eating away the previous week’s 509K barrel gain.
Crude Oil prices have been in a slump recently as it looks increasingly likely the ongoing Israel-Palestinian Hamas conflict is not going to spill over to neighboring countries and pose a threat to global Crude Oil production and supply. Further weighing on Crude Oil bids is US inflation, which continues to print higher than expected and keeping the Fed’s hands tied when it comes to interest rate cuts, hobbling broad-market risk appetite as investors look for signs the Fed could cut rates sooner rather than later.
US Consumer Price Index (CPI) inflation figures are due on Wednesday and threaten to destabilize intraday market volatility if inflation continues to run hotter than market forecasts can adapt to.
WTI technical outlook
US Crude Oil trades within a near-term demand zone between $78.00 and $77.00. A bullish extension to the topside will need to overcome the last major swing high near $79.60, while a bearish pierce of technical prices near $77.00 will threaten an extended run into prices set in March.
WTI hourly chart![](https://editorial.fxstreet.com/miscelaneous/WTI%20US%20OILH-638513199812385556.png)
WTI daily chart![](https://editorial.fxstreet.com/miscelaneous/WTI%20US%20OIL-638513199693765109.png)
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
![AUD/USD bounces back toward 0.6800 despite a cautious mood](https://editorial.fxstreet.com/images/Markets/Currencies/Majors/AUDUSD/australian-currency-18259170_XtraSmall.jpg)
AUD/USD bounces back toward 0.6800 despite a cautious mood
Having found fresh buyers, AUD/USD is rebounding toward 0.6800 in Asian trading on Tuesday. Fading US Dollar recovery and the potential easing of Mid-East tensions underpin the Aussie, despite a cautious market mood. Mid-tier US data awaited.
![USD/JPY consolidates the upswing below 145.00, US data eyed](https://editorial.fxstreet.com/images/Markets/Currencies/Majors/USDJPY/japanese-yen1_XtraSmall.jpg)
USD/JPY consolidates the upswing below 145.00, US data eyed
USD/JPY is clinging to recovery gains below 145.00 in the Asian session on Tuesday. The pair is unperturbed by a cautious market environment, cheering the recent rebound in the US Dollar and the US Treasury bond yields. The focus stays on US data and Fed-BoJ policy divergence.
![Gold loses ground despite rising Fed rate cut bets, geopolitical risks](https://editorial.fxstreet.com/images/Markets/Commodities/Metals/Gold/stacks-of-gold-bars-19033163_XtraSmall.jpg)
Gold loses ground despite rising Fed rate cut bets, geopolitical risks
Gold price trades in negative territory amid the modest recovery of the US Dollar on Tuesday. Nonetheless, the signal from US Federal Reserve Chair Jerome Powell at Jackson Hole to start cutting interest rates is likely to support the precious metal.
![Ethereum suffers declining investor interest following historical August market lull](https://editorial.fxstreet.com/images/Markets/Currencies/Digital%20Currencies/Ethereum/Ethereum_Coins_XtraSmall.jpg)
Ethereum suffers declining investor interest following historical August market lull
Ethereum is down nearly 3% on Monday following a decrease in key metrics, including institutional interest, trading volume and transaction count. The decline is also evident in ETH's price, which has failed to overcome a key price resistance.
![Three fundamentals for the week: Focus on the fragility of the US economy](https://editorial.fxstreet.com/images/Macroeconomics/EconomicIndicator/Employment/NFP/american-dollar-bills-on-a-stars-and-stripes-flag-28691402_XtraSmall.jpg)
Three fundamentals for the week: Focus on the fragility of the US economy Premium
US Consumer confidence data will provide a gauge of how consumers are feeling. Jobless claims are in focus after Fed Chair Powell's dovish speech. Investors will look to the core PCE index to confirm that inflation is falling.
![Moneta Markets review 2024: All you need to know](https://editorial.fxstreet.com/images/IT/Testing/Review/FXSBadgeCertifiedBackg_XtraSmall.png)
Moneta Markets review 2024: All you need to know
VERIFIED In this review, the FXStreet team provides an independent and thorough analysis based on direct testing and real experiences with Moneta Markets – an excellent broker for novice to intermediate forex traders who want to broaden their knowledge base.