The sentiment around the black gold remains sour so far this Wednesday. Meanwhile, what does the warning issued by the International Energy Agency (IEA) today in its monthly oil market report contain? Stay informed with this 16 May WTI Crude Oil Price Technical Forecast.
16 May, GKFX – Having failed to sustain the bounce above the $ 71 mark, WTI (oil futures on NYMEX) continues to wave around the last, with downside risks still in place should the US EIA crude stockpiles report show an inventory build.
WTI eyes EIA stockpiles data for fresh signals
The sentiment around the black gold remains sour so far this Wednesday, as markets weigh in signs of ample global supplies in physical crude markets, despite hopes of tightening supplies amid US sanctions on Iran and the OPEC output cuts deal.
Also, the warning issued by the International Energy Agency (IEA) today in its monthly oil market report, citing that global oil demand may suffer as crude nears $80, added to the weight on the commodity.
Focus now shifts towards the US weekly crude inventory report published by the EIA due later today for fresh direction on the prices.
16 May WTI Crude Oil Price Technical Forecast
According to Slobodan Drvenica, Information & Analysis Manager at Windsor Brokers,
“Oil price hit new marginally higher 3 ½ year high at $71.90 on Tuesday but reversed quickly to end day in long-legged Doji. Overall structure remains bullish and tensions in the Middle East maintains positive sentiment, but a fresh strength of the dollar could weigh on oil price.
Rising 10 SMA continues to track the advance and marks strong support at $70.45 (along with Monday’s correction low at $70.25) which is expected to hold and keep bulls intact. Res: 71.18; 71.61; 71.90; 72.48 Sup: 70.84; 70.45; 70.25; 70.00.”
This article 16 May WTI Crude Oil Price Technical Forecast was written by analysts at GKFX. The information provided herein is for general informational and educational purposes only. It is not intended and should not be construed to constitute advice.
If such information is acted upon by you, then this should be solely at your discretion, and GKFX will not be held accountable in any way.