WTI oil price moved lower on Wednesday on concerns that renewed trade war threats could depress demand, with negative sentiment being additionally boosted by news that oil exports from Libya would return to normal levels after being reduced in past couple of months.
Stronger than expected fall in US crude inventories (API report on Tuesday showed fall of 6.8 million barrels, well above 4.5 million barrels draw last week) did little to support oil prices.
Negative near-term outlook is supported by south-turned daily RSI and slow stochastic as today’s weakness retraced over a half of $72.13/$74.67 recovery leg.
Bears hit session low at $73.18 where base of thick hourly cloud offered footstep and break here and nearby Fibo support at $73.10 (Fibo 61.8% of $72.13/$74.67) would generate bearish signal and re-expose key near-term support at $72.13 (06 July trough).
Broken 10SMA offers resistance at $73.86 which is expected to cap and maintain fresh bearish bias.
Focus turns towards release of EIA weekly crude stocks report, due later today. Inventories are forecasted to fall by 4.48 million barrels, compared to last week’s 1.24 million barrels build.
Res: 73.86, 74.25, 74.78, 75.34
Sup: 73.18, 72.52, 72.13, 70.85
