WTI retraces EIA-inspired spike, looks to settle below $56

EIA says crude oil inventories fell by 10 million barrels in US.
Fears over global economic slowdown continue to weigh on crude oil.
Brent oil clings to gains above $60 handle.

Eren Sengezer FXStreet

After posting strong gains on Tuesday, crude oil prices stretched higher earlier today. With the weekly crude oil data published by the US Energy Information Administration (EIA) showing a sharp fall in the US crude oil inventories, crude oil prices extended their rally. The barrel of West Texas Intermediate touched its highest level in a week $56.70 and the barrel of Brent rose to $60.97.

In its weekly publication, the EIA said crude oil inventories fell by 10 million barrels per day, compared with analysts' estimate for a draw of 2.1 million barrels, and provided a strong boost to crude oil prices.

Risk aversion hurts crude oil

However, concerns over a global economic slowdown and its potential negative impact on the energy demand outlook continue to make it difficult for crude oil to continue to gather strength.

After inverting with the 3-month US Treasury bond yield for the first time in 12 years on Tuesday, the 30-year Treasury bond yield extended its slide and touched a fresh record low today, reviving fears over a recession in the US and forcing investors to stay away from risk-sensitive assets. Furthermore, the data published from Germany on Tuesday confirmed the economic contraction in the second quarter.

As of writing, the WTI was trading at $55.57, losing 0.13% on the day while the barrel of Brent was up 0.4% on the day at $60.30.

Technical levels

WTI

Overview
Today last price	55.52
Today Daily Change	-0.13
Today Daily Change %	-0.23
Today daily open	55.65

Trends
Daily SMA20	54.89
Daily SMA50	56.55
Daily SMA100	58.27
Daily SMA200	56.19

Levels
Previous Daily High	55.65
Previous Daily Low	53.65
Previous Weekly High	57.08
Previous Weekly Low	53.22
Previous Monthly High	60.99
Previous Monthly Low	54.87
Daily Fibonacci 38.2%	54.89
Daily Fibonacci 61.8%	54.41
Daily Pivot Point S1	54.32
Daily Pivot Point S2	52.98
Daily Pivot Point S3	52.32
Daily Pivot Point R1	56.32
Daily Pivot Point R2	56.98
Daily Pivot Point R3	58.32

Author

Eren Sengezer

FXStreet

As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.

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