WTI eyes $115.00 on falling US SPR, EU focuses on a Russian oil embargo

West Texas Intermediate (WTI) futures on NYMEX, has rebounded sharply after testing its crucial support of $110.00 in the New York session. After a mild correction, the oil prices are set to advance further towards the round level resistance of $115.00.

The strength in the oil bulls is backed by lower oil inventories in the US Strategic Petroleum Reserve (SPR). The US SPR has fallen to 538 million barrels, the lowest since 1987, as per Reuters. Earlier, US President Joe Biden announced the highest release of oil from its US SPR to diminish the supply worries. Meanwhile, oil supply from Moscow has plunged by 9% as per Hellenic Shipping news. Russian oil output has been reported at 9.16 million barrels per day (bpd) in April, a deviation by 860,000 million bpd raises concerns over the supply issues in an already tight oil market.

On Wednesday, the European Union (EU) unveiled a 210 billion euro plan to end its dependence on oil from Russia by 2027 as per Reuters. This has elevated the oil supply worries, which will keep the bullish momentum intact

On the demand side, China has imposed more restrictive measures to curb the spread of the Covid-19. The Chinese administration is advocating a Work From Home (WFH) policy to contain the spread of the virus and remove curbs on the movement of men, materials, and machines.

Suggestion:

Sell below 114.50 for 111.75 and 110.30

Else

Buy above 114.50 for 115.50 and 116.50

- share

View All

Wti Price Analysis: Weekly Ascending Trend Channel Defends Buyers Above $108.00

Commodities
2022, 30 June

Xag/usd Bounces Off Two-year Low/ascending Channel Support

Commodities
2022, 30 June

Xauusd Defends $1,800 And Rebounds Swiftly From One-and-half-month Low

Commodities
2022, 30 June

MOST POPULAR

YaMarkets is a registered trademark of YaMarkets Limited.
www.YaMarkets.com is owned solely by YaMarkets Limited.
YaMarkets Limited is registered in St. Vincent & the Grenadine as an International Business Company with the registration number 26065 BC 2020.
YaMarkets Limited is authorized and regulated by the Vanuatu Financial Services Commission (VFSC) 14819
Registered Address: Suite 305, Griffith Corporate Centre, Kingstown P.O. Box 1510, Beachmont Kingstown St. Vincent and the Grenadines

RISK WARNING : Forex and CFDs are leveraged products and involve a high level of risk. It is possible to lose all your capital. These products may not be suitable for everyone and you should ensure that you understand the risks involved. Seek independent advice if necessary. Risk disclosure

IMPORTANT NOTICE : Any news, opinions, research, analyses, prices or other information contained on this feed are provided as general market commentary and do not constitute investment advice. The market commentary has not been prepared in accordance with legal requirements designed to promote the independence of investment research, and therefore, it is not subject to any prohibition on dealing ahead of dissemination. We do not make any warranties about the completeness, reliability and accuracy of this market commentary. Past performance is not an indication of possible future performance. Any action you take upon the information on this feed is strictly at your own risk, and we will not be liable for any losses and damages in connection with the use of this feed.