WTI prices tick up above $84, bulls remain capped at $84.50. (Pivot Orderbook analysis)

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• WTI prices tick up above $84, bulls remain capped at $84.50.
• Fears of a global recession and lower Chinese demand hurt crude prices.
• US commercial oil stocks declined unexpectedly.

The pair currently trades last at 82.93.

The previous day high was 85.48 while the previous day low was 81.29. The daily 38.2% Fib levels comes at 82.89, expected to provide support. Similarly, the daily 61.8% fib level is at 83.88, expected to provide resistance.

WTI futures are trading without clear direction on Wednesday, despite the unexpected decline in US oil inventories. The West Texas Intermediate retreated to session lows at 82.60 earlier today, before attempting to pare losses, although recovery attempts remained capped below 84.50.

Crude prices have depreciated about 10% over the last two weeks amid a combination of increasingly negative global economic perspectives and fears of a decline on Chinese demand.

The Chinese Government has delayed the release of key indicators scheduled to be published this week, including the third quarter’s GDP, which was due on Wednesday. This decision has been taken negatively by the market and has increased doubts about China’s economic momentum and its potential impact on oil demand.

Furthermore, US President Joe Biden has confirmed his commitment to keep releasing crude from the country’s oil reserves, which has increased negative pressure on prices.

Against this backdrop, the unexpected decline in US commercial oil inventories has been unable to push crude prices higher. The EIA reported earlier on Wednesday a 1.725M decline in inventories in the week of October 14 against market expectations of a 1.38M increase.

Technical Levels: Supports and Resistances

XTIUSD currently trading at 82.93 at the time of writing. Pair opened at 82.79 and is trading with a change of 0.17 % .

The pair remains strongly bearish on the daily time frame. It trades below the 20 SMA @ 84.08, 50 SMA 86.82, 100 SMA @ 95.12 and 200 SMA @ 97.26.

The previous day high was 85.48 while the previous day low was 81.29. The daily 38.2% Fib levels comes at 82.89, expected to provide support. Similarly, the daily 61.8% fib level is at 83.88, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 80.89, 78.99, 76.7
• Pivot resistance is noted at 85.09, 87.38, 89.28

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