Crude Oil Bounces $2 Off MAs As EIA Inventories Draw

In June, oil prices surged significantly but have since declined this month. However, moving averages are holding steady, and the decrease in EIA inventory has helped halt the fall, resulting in a $2 increase in WTI crude oil today. WTI saw an increase of more than $10 last month, peaking at $84, but reversed direction in the first half of July, falling below $80 and hitting lows of $79. Today’s market movement suggests that the trend remains optimistic, with moving averages providing price support.

Factors Influencing Oil Prices

WTI Oil Chart Daily – The 100 SMA Is Acting As Support

This sluggish growth rate is reducing global oil demand. At the same time, the strength of the U.S. dollar, evidenced by its steady rise over the past three sessions, has made oil more expensive for holders of other currencies, negatively impacting oil prices. However, concerns about potential supply disruptions due to increasing tensions in the Middle East, coupled with the draw in EIA inventories and technical analysis, have contributed to today’s price rebound.