EIA Crude Oil Stocks change is due at 14:30 GMT and is unlikely to deliver much good news as US output continues to outstrip demand. In the meantime, how is the black gold trading at the moment? Tae a look at this 4 April WTI Crude Oil Price Fundamental Outlook.
4 April, GKFX – Crude oil is still hanging near the week’s low mark, currently cycling near 63.20 per barrel as a notable lack of market risk appetite keeps the commodity depressed despite recoveries in other risk assets.
WTI sees little bidding action as oversupply keeps buyers on the back foot
Oil took a header at the start of the week with the WTI tumbling from 65.37 to 62.76, a peak-to-trough decline of almost 4 percent, and crude has so far failed to stage a passable recovery, reaching as high as 63.73 in Tuesday’s trading before declining back into the 62.20 region in early Wednesday action.
Oversupply continues to be the latchkey constraint on oil prices, with the US steadily bringing more crude to market than demand can hope to eat up and engorge US supply lines and refinery stocks, while Russia has also begun creeping up their production, despite the OPEC’s internal agreement to constrain supplies in an effort to reign in tumbling oil prices on the back of the American crude glut.
4 April WTI Crude Oil Price Fundamental Outlook
With crude still trading safely within March’s range, the challenge for bulls will be to break up and out current resistance at the week’s open of 65.37, with further resistance posing a challenge at 2018’s double top near 66.50, while a bearish continuation will see support nearby at the 34-day EMA at 62.92, with further support from the week’s low at 62.76.
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