The WTI Crude oil price on Wednesday rallied to trade above $70.00 despite an unexpected surge in US crude oil inventories. The light crude oil advanced to trade above the 100-hour moving average in the 60-min chart after bottoming at $65.00 on Tuesday.
The oil price plunged earlier this week after news the OPEC+ members agreed on a deal to gradually increase production output to pre-pandemic levels following a stalemate in the previous week. The WTI crude oil has now surged to overbought conditions in the 14-hour RSI.
WTI Crude Oil Fundamentals Overview
From a fundamental perspective, oil is trading at the back of a relatively busy period in the market. Earlier this week, news emerged that Saudi Arabia and the UAE had finally come to an agreement to gradually increase production output to pre-pandemic levels by 2022. The two countries were at a stalemate two weeks ago with the UAE pushing to increase its daily output by 4 million barrels.
Elsewhere, the US API crude oil stocks for last week came in at 0.806 million on Tuesday up from the previous week’s count of -4.079 million. On the other hand, the EIA WTI crude oil stocks change missed the expectation of -4.466 million with an inventory count of 2.108 million barrels, up from the previous week’s -7.89 million.
WTI Crude Oil Technical Analysis (the 60-min Chart)
Technically, the light crude oil appears to have recently bounced off 7-week lows of about $65.00 per barrel to trade above $70.00. The oil price has now rallied to overbought conditions of the 14-hour RSI. It has also crossed above the 100-hour moving average.
The bulls will be targeting short-term profits at around $71.01 or higher at $71.92. On the other hand, the bears will look to pounce on potential pullbacks at $69.54 or lower at $68.68.
WTI Crude Oil Technical Analysis (the Daily Chart)
In the daily chart, the light crude oil price appears to be trading within an ascending channel formation. It recently bounced off the 100-day moving average to return within the channel after breaking out earlier this week.
The bulls will be looking to ride the current bull-run by targeting profits at around $72.89 or higher at $75.56. On the other hand, the bears will target long-term pullbacks at $67.97 or lower at $65.11.