The price of WTI oil moved out of the descending channel on the H4 timeframe. And the fundamentals are also picking up the mood for a change of trend.
According to CNN, Joe Biden's administration wants to buy 3 million barrels of oil to restock the Strategic Petroleum Reserve (SPR).
Currently, the Department of Energy is reviewing proposals for crude oil to increase reserves in the large Big Hill storage facility. Fuel reserves in the SPR dropped to 362 million barrels, the lowest level since 1983. When Biden took office in January 2021, the SPR had about 638 million barrels of oil.
In April of this year, John Kirby, the White House's strategic communications coordinator, reported on the difficulties the U.S. faces in restocking its strategic oil reserves.
Previously, the U.S. Secretary of Energy Jennifer Granholm noted that the recovery of strategic oil reserves will take several years because the U.S. authorities want to buy fuel at a cheaper price than they used to sell it.
The oil demand may increase because such a resupply indicates the U.S. is looking for sufficient fuel supplies. A possible increase in demand could support oil prices or even lead to growth in the medium term.
Today at 15:30 GMT, the EIA oil and petroleum product inventories data will be published. It is expected that fuel stocks will go into deficit and will be -0.92 million barrels from the previous value of 2.951. A decrease in oil and petroleum product inventories may indicate a strengthening of oil demand or a decrease in oil production. Confirmation of the forecast may support the growth of WTI oil prices, as the reduction in inventories is usually associated with expectations of high demand for petroleum products.
The WTI oil price is in the process of forming a third ascending wave on the H4 timeframe. Breakout of the first wave top at 77.47 will strengthen the movement of price to selling.
Signal:
The short-term prospects for WTI are to buy.
The target is at the level of 77.80.
Part of the profit should be fixed near the level of 73.80.
The stop-loss is at the level of 66.60.
"Bullish" trend has a card-like character, so the volume of trade should be less than 2% of your balance.
This content is for informational purposes only and is not intended to be investing advice.
