Short-term outlook for WTI depends on EIA figures

26 April 2023 235
Short-term outlook for WTI depends on EIA figures


China’s economic growth as the largest energy consumer might have an impact on WTI pricing.


According to collected data, China’s economy continued its growth in April. However, the rate of recovery is closely monitored amid an uncertain global environment and a relatively high unemployment rate in the country.


Last quarter, the world’s second-largest economy expanded at the fastest pace in a year. Analysts are watching carefully to see whether the economic recovery will be sustained. Several major banks have raised their GDP growth forecasts for the year to 6% or higher.


The sub-index for production and sales climbed to a 16-month maximum on higher new export orders. Shipments from South Korea, a key indicator of global demand, fell 11% year-on-year in the first 20 days of April, down from a nearly 18% drop in March. This should support the recovery in China’s exports. The strength of consumer spending remains uncertain. The unemployment rate, especially for young people, remains high, and households spend less money in favor of saving.


The economic growth points to increased energy demand in the country. The rise in production and sales volumes, as well as in export orders might stimulate demand for oil.


The U.S. EIA crude oil inventories data will be released today at 14:30 GMT. The inventory deficit is projected to decline from -4,581 to -1,486 million barrels. If confirmed, this might support the price of WTI crude oil. This deficit shows increased energy demand.


After exiting the downtrend on the H1 timeframe WTI prices formed a new price corridor of 76.70 – 79.90. The price pulled back from the support level of 76.70, signaling the movement towards the resistance at 79.00.

 

Signal:

The short-term outlook for WTI suggests buying

The target is at the level of 79.00.

Part of the profit should be taken near the level of 78.15.

The Stop-loss is at the level of 76.40.

Bullish trend is of short-term nature, so it is worth selecting the trading volume of not more than 2% of your balance.


This content is for informational purposes only and is not intended to be investing advice.

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