The Price of WTI crude futures are settling at $71.80. That’s just one penny higher than yesterday’s settlement level at $71.79. The high price it today it reached $72.34. The low was at $70.22.
Oil prices experienced volatility due to various factors.
Initially, prices fell in response to the Federal Reserve’s more hawkish stance and following strong ADP employment data. That led to risk aversion and increased demand for the US dollar.
However, later the release of bullish weekly inventory data by the EIA helped reverse the bearish trend. The EIA reported a larger-than-expected drawdown of 1.5 million barrels in US crude stocks, along with significant draws in other petroleum products. Finally, sources also indicated that OPEC would maintain an optimistic outlook on oil demand growth for the next year, projecting a slowdown compared to this year but still a higher-than-average increase.
When the dust settled, the settlement price was as close to unchanged as you can get despite the ups and downs.
On the topside, the 100-day moving average looms above $73.92. Before then, the swing high prices from June 22 come in a $72.72. Stay below those levels and sellers are still in more control.