WTI Crude Oil Price Analysis for Nov. 24, 2022

WTI crude oil is trending lower on its short-term time frames and has bounced off the descending channel resistance. Price is down to the mid-channel area of interest and might have some bearish momentum for further declines.

The 100 SMA is below the 200 SMA to indicate that the path of least resistance is to the downside or that the selloff is more likely to gain traction than to reverse. The 100 SMA lines up with the channel top to add to its strength as a ceiling.

Stochastic is still heading up to show that bullish momentum is present, and the oscillator has some ground to cover before reflecting overbought conditions. RSI is also turning higher after dipping into the oversold region, suggesting that bullish pressure is in play.

In that case, crude oil could still bounce back to the channel top at $80 per barrel or attempt to break higher for a reversal.

Crude oil is under downside pressure on rumors that the OPEC might be considering increasing its production targets. However, renewed geopolitical tensions between Ukraine and Russia might keep the global supply of the commodity limited, even as demand picks up.

Risk appetite also took some hits after the FOMC minutes signaled scope for more tightening measures. This meeting took place before the latest strong CPI figures were printed, which means that some policymakers might have even shifted to a more hawkish stance this time.

For now, crude oil is drawing some support from the larger than expected draw in stockpiles as reported by the American Petroleum Institute and Energy Information Administration. The EIA printed a reduction of 3.7 million barrels versus the projected drop of 2.6 million barrels.

However, this is a smaller draw compared to the earlier drop of 5.4 million barrels, suggesting that demand may have slowed.

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