WTI dips lower after API build

Crude stock produced a build of 8.42 million barrels over the last week.
The price of spot WTI trades higher by 0.47% despite the dip.

Rajan Dhall, MSTA FX Daily

Spot WTI 1-hour chart

Sources have reported that over the last week there has been a build of 8.42 million barrels according to the lasted API data. This news has led WTI to fall around 1.82% over the last couple of hours.

The resistance was noted at 40.60 on the day. The market is now testing the 55 Exponential Moving Average but just below that is the USD 38.17 per barrel level. This red line on the chart below represents the aforementioned level and it could be the next support area.

Throughout the session there have been reports of the Libyan would field Sharara field being in and out of action. On top of this, the EU, France, Germany and Italy urge all Libya and international parties to immediately stop all military action. This also led to a small dip in the oil price but there has been no confirmation from Libya. Nevertheless, it seems that there is now some selling pressure leading into the Asia market open.

In a joint statement with the foreign ministers of Germany, France and Italy issued on Tuesday, the EU's Josep Borrell called on the conflict parties in Libya to swiftly agree on a ceasefire and withdraw all foreign forces, mercenaries and military equipment.

Author

Rajan Dhall, MSTA

FX Daily

Rajan Dhall is an experienced market analyst, who has been trading professionally since 2007 managing various funds producing exceptional returns.

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