U.S. West Texas Intermediate crude oil futures are trading weaker but off their low late in the session on Wednesday after a government storage report triggered a plunge in prices. Also weighing on prices is a sell-off in U.S. equity markets. A firm U.S. Dollar may have also exerted a slightly bearish influence on the dollar-denominated asset.
At 18:22 GMT, July WTI crude oil futures are trading $63.43, down $2.07 or -3.16%.
U.S. crude stocks rose while gasoline and distillate inventories fell last week, the Energy Information Administration (EIA) said on Wednesday.
Crude inventories rose by 1.3 million barrels in the week to May 14 to 486 million barrels, compared with analysts’ expectations in a Reuters poll for a 1.6 million-barrel rise.
Daily Swing Chart Technical Analysis
The main trend is down according to the daily swing chart. The trend turned down when sellers took out a pair of main bottoms at $63.12 and $62.82. A move through $67.02 will change the main trend to up.
The main range is $57.18 to $67.02. Its retracement zone at $62.10 to $60.94 is the key support area. This zone stopped the selling at $65.35 earlier today. This area is also controlling the near-term direction of the market.
The short-term range is $60.55 to $67.02. The market is currently testing its retracement zone at $63.02 to $63.79.
The minor range is $67.02 to $61.95. Its 50% level or pivot at $64.49 is resistance.
Daily Swing Chart Technical Forecast
The direction of the July WTI crude oil market into the close on Wednesday is likely to be determined by trader reaction to $63.79 and $63.02.
A sustained move over $63.79 will indicate the presence of buyers. This could trigger a late-session rally into the minor pivot at $64.49.
A sustained move under $63.02 will signal the presence of sellers. The first downside target is $62.10, followed closely by $61.95.
If $61.95 fails as support then look for the selling to possibly extend into $60.94, followed by $60.55.