WTI Crude Oil Extends Monthly Declines to New 2-Week Lows as US Inventories Soar

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The WTI Crude oil price on Wednesday extended this month’s declines to a new 2-week low of about $67.97 amid increasing US inventories. The light crude oil is now trading just off the oversold conditions of the 14-hour RSI in the 60-min chart.

The oil price remains pinned within a descending channel formation, indicating a short-term bearish bias. It has now fallen several levels below the 100-hour moving average following Wednesday’s plunge.

WTI Crude Oil Fundamentals Overview

From a fundamental perspective, the light crude oil is trading at the back of a relatively busy period in the market. On Wednesday, the EIA Crude oil stocks change report showed a change of 3.626 million barrels for last week, significantly higher than the market expectation of -3.102 million barrels. This also compares to -4.089 million barrels for the previous week. Earlier in the week, the US API weekly crude oil stock returned a balance of -0.879 million barrels, up from the previous week’s equivalent of -4.728 million.

Elsewhere, the US ISM Services PMI for July beat the expectation of 60.4 with 64.1, while the ISM Manufacturing missed 60.9 with 59.5. On the other hand, the ADP Employment change for July came short of 695k with a job count of 330k, while factory orders for June outperformed the expected change of 1% with a change of 1.5% (MoM).

WTI Crude Oil Technical Analysis (the 60-min Chart)

Technically, the Light Crude Oil Price appears to be trading within a sharply descending channel formation in the 60-min chart. It has now sunk closer to the oversold conditions of the 14-hour RSI. This indicates a strong short-term bearish bias in the market sentiment.

The bears will be looking to extend the current declines towards $67.26 or lower to $66.44. On the other hand, the bulls will target potential short-term rebounds at around $68.68 or higher at $69.55.

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. This indicates a significant long-term bullish bias in the market sentiment. It has recently pulled back to trade closer to the 100-day moving average.

Therefore, the bulls will be targeting long-term rebound profits at around $71.52 or higher at $75.43. On the other hand, the bears will look to pounce for extended pullbacks at $64.97 or lower at $61.43.

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