- WTI remains under pressure following Thursday’s US inflation data.
- Strong resistance below $ 85.00 remains intact, psychological support at $ 80.00.
Several headwinds led to a sharp drop in oil prices on Wednesday. The negative tone extends to Thursday. A barrel of WTI is trading at $ 80.55, falling just under 1%. It is at the lowest level in five days, and after having tested the recent peak of highs in years.
The data of US inflation A larger-than-expected blow to oil prices, as it will imply a greater effort by President Biden’s administration to ease the hikes in energy prices. Also, it could lead to Federal Reserve to withdraw monetary stimuli more quickly.
To the previously mentioned factors, the rise of the dollar and the decline in the markets of variable income, in the new context. Another event that added negatively was the unexpected rise in US crude inventories.
Technically, WTI remains in short-term ranges with a long-term uptrend. To enable more raises it has to exceed and affirm above $ 85.00. If it continues below, certain limitations and corrections will be expected.
The very short-term tone is one of weakness, which could change with a recovery above $ 82.00. The next support for consideration below the $ 80.00 psychological area is at $ 79.40. Below, there could be a downward acceleration.
Technical levels
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