- WTI price returns to the red, as diplomacy talks ease war risks.
- Bulls, however, remain hopeful while above the 21-DMA critical support.
- Geopolitics will continue to drive the oil price action in the coming sessions.
WTI (NYMEX futures) has reversed most of Thursday’s uptick, now posting moderate losses to pressurize daily lows near the $89.00 region.
The bears are back in the game amid easing fears of an imminent Russian invasion of Ukraine, as diplomacy calls in for de-escalation, especially with US Secretary of State Antony Blinken having accepted an invitation to meet Russian Foreign Minister Sergey Lavrov late next week, per the official source.
Meanwhile, investors also weigh in an unexpected build-up in the weekly US crude stocks data, published by the Energy Information Administration (EIA) on Wednesday. US crude inventories rose by 1.1 million barrels for the week ended Feb. 11 vs. expectations of a decline of 200,000 barrels, according to an S&P Global Platts poll.
Looking ahead, the geopolitical updates concerning the Ukrainian border will continue to lead the sentiment, impacting the oil price action. Meanwhile, end of the week repositioning could also affect the black gold.
Technically, nothing seems to have changed for WTI, as bulls continue to stay hopeful while the upward-sloping 21-Daily Moving Average (SMA) at $88.38 is defended.
The 14-day Relative Strength Index (RSI), however, turns lower towards the central line, suggesting that a retest of the 21-DMA support remains on the cards.
If the 21-DMA is breached convincingly, then a sharp drop towards the previous week’s low of $87.46 will be in the offing.
On the other side, a rebound in WTI could retest the $90.00 threshold, above which doors will open up towards Thursday’s high of $91.38.
WTI: Daily chart
WTI: Additional levels to watch
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
EUR/USD stays vulnerable near 1.0600 ahead of US inflation data
EUR/USD remains under pressure near 1.0600 in European trading on Wednesday. The pair faces headwinds from the US Dollar upsurge, Germany's political instability and a cautiou market mood, as traders look to US CPI data and Fedspeak for fresh directives.
GBP/USD trades with caution below 1.2750, awaits BoE Mann, US CPI
GBP/USD trades with caution below 1.2750 in the European session on Wednesday, holding its losing streak. Traders turn risk-averse and refrain from placing fresh bets on the pair ahead of BoE policymaker Mann's speech and US CPI data.
Gold price holds above $2,600 mark, bulls seem non committed ahead of US CPI
Gold price staged a modest recovery from a nearly two-month low touched on Tuesday. Elevated US bond yields and bullish USD cap gains for the non-yielding XAU/USD. Traders now look forward to the key US Consumer Price Index report a fresh impetus.
US CPI data preview: Inflation expected to rebound for first time in seven months
The US Consumer Price Index is set to rise 2.6% YoY in October, faster than September’s 2.4% increase. Annual core CPI inflation is expected to remain at 3.3% in October. The inflation data could significantly impact the market’s pricing of the Fed’s interest rate outlook and the US Dollar value.
Forex: Trump 2.0 – A high-stakes economic rollercoaster for global markets
The "Trump trade" is back in full force, shaking up global markets in the aftermath of the November 5th U.S. election. This resurgence has led to substantial shifts in both currency and bond markets, with the U.S. dollar index (DXY) jumping 2.0% + since election day.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.