WTI Crude Drops to $85.55 Amid Gaza Ceasefire Talks and Inventory Rise Concerns

West Texas Intermediate (WTI) crude experienced a decrease, falling by $1.36 to settle at $85.55 per barrel. This movement came as Israel reduced its military footprint in Gaza, moving forward with ceasefire discussions with Hamas.

WTI Crude Price Chart – Source: TradingviewThis development led to a reduction in the geopolitical risk premium, with Brent crude also witnessing a decline of $1.60, reaching $89.57 per barrel.

Inventory Levels and Market Response

The market anticipates a rise in U.S. crude inventories, with projections suggesting an increase of approximately 2 million barrels last week. This expected surge in supply has contributed to the downward pressure on prices.

Furthermore, the global oil market remains attentive to Iran’s potential response to the recent airstrike, which could significantly impact market stability and price dynamics.

Economic Indicators and Demand Forecast

Recent U.S. economic data, including the addition of 250,000 jobs in the last employment report, underscores the economy’s resilience, potentially influencing the Federal Reserve’s rate strategy.

Investors are keenly awaiting consumer price index data from both the U.S. and China, with expectations of a 0.3% month-on-month increase, to gauge the economic health of the top two oil-consuming nations and its implications for oil demand and price trends.

WTI Crude Oil Price Forecast; Technical Outlook

On April 8, Crude Oil (USOIL) experienced a decrease, pricing at $85.84, down by 0.91%. The pivotal mark is set at $84.84, with the commodity showing a bullish trend above this level. Resistance is noted at $86.32, $87.50, and $88.73, while support levels are identified at $83.48, $82.20, and $80.80.

The Relative Strength Index (RSI) stands at 53, hinting at a neutral to mildly bullish sentiment. The 50-Day Exponential Moving Average (EMA) at $84.59 suggests a supportive trend, with the upward channel maintaining a bullish stance for West Texas Intermediate (WTI) above $84.84.

A decline below this pivot could trigger a notable downward movement, emphasizing its significance in the oil market’s trajectory.