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WTI on the Rise: Assessing Crude Oil’s Gains Ahead of US CPI Release

by Rishika Mirchandani   ·  May 10, 2023   ·  

WTI crude oil prices have remained steady just below the $73 per barrel mark today, recovering from last week’s sell-off that saw it trade at its lowest level since late 2021. The market is now awaiting the release of the American Petroleum Institute’s (API) weekly statistical bulletin and the monthly OPEC+ oil market report, which is scheduled for Thursday. In the meantime, the focus for the broader market is on the US Consumer Price Index (CPI) report due on Wednesday.

Wall Street finished barely moved yesterday, despite lingering concerns around the debt ceiling and regional banking concerns. Regarding WTI crude oil, the market overcame breakpoint resistance in the 72.25 – 72.45 area overnight, and that zone might now provide support. Further support might be at the previous lows of 66.82, 66.12, 64.36, 63.64, and 62.43.

On the topside, the nearby breakpoint at 73.93 may offer support ahead of a series of simple moving averages (SMA) in the 75.54 – 76.63 area. If those SMAs are vanquished, it could indicate that bearish momentum might be retreating.

In summary, the market is eagerly anticipating the release of API’s weekly statistical bulletin, OPEC+ oil market report, and the US CPI report, which are expected to have an impact on WTI crude oil prices. Meanwhile, other factors such as the price of spot gold, Treasury yields, and equity markets in the APAC region, are also being closely watched.

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