West Texas Intermediate (WTI) oil prices rose modestly overnight but settled mixed at the New York close as the coronavirus pandemic’s heavy toll on demand offset hopes for a forthcoming $US2 trillion US economic relief package.
Overnight, U.S. oil inventories fell slightly last week, according to a measure by the American Petroleum Institute out Tuesday.
Stockpiles of crude fell by 1.25 million barrels for the week ended March 20, the API said.
Both crude benchmarks have dropped for four straight weeks, with (WTI) slumping nearly -36% last week, its steepest slide since the outset of the U.S.-Iraq Gulf War in 1991.
The value of oil prices has lost roughly halved after an unexpected oil price war erupted between producers Russia and Saudi Arabia earlier this month.
From the technical outlay, in the short-term, it is assessed that the oil bulls will have to continue their upward rhythm if they want to reach the failed region of last week’s around $28.60-85 level. Reassess from there.
The bullish foundations hold from $16.00-$19.00 (on the wide), then, $20.00-40 to $21.00.
The immediate support is viewed from $22.55-70.