Western Texas Intermediate (WTI), the US crude oil benchmark, has risen close to 4%. (Pivot Orderbook analysis)

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• Western Texas Intermediate (WTI), the US crude oil benchmark, has risen close to 4%.
• US inventories added 2.6 million barrels, above estimates but lower than Tuesday’s API’s 4.5 million build-ups.
• WTI Price Analysis: A move toward $90.00 is almost certain after regaining the 20/50-DMAs.

The pair currently trades last at 88.05.

The previous day high was 85.74 while the previous day low was 82.82. The daily 38.2% Fib levels comes at 84.62, expected to provide support. Similarly, the daily 61.8% fib level is at 83.93, expected to provide support.

WTI soared during the New York session, propelled by the overall US Dollar weakening, tumbling more than 1%, while WTI’s exports hit an all-time high due to domestic refiners operating at a higher level. At the time of writing, WTI is trading at $88.05 per barrel after hitting a daily high of $88.38.

The US Dollar Index, a gauge of the buck’s value against a basket of peers, is stumbling for the second consecutive day, more than 1%, down from 111.135 highs to 109.774, a tailwind for the oil price.

Also, given the backdrop of the Organization of Petroleum Exporters Countries (OPEC) decision to cut oil output bolstered WTI price as the market prepares for tighter supply in the coming months. Additionally, the shortage of Russian products due to an oil embargo will have implications for inflation, according to Goldman Sachs, in a note quoted by Bloomberg.

In the meantime, US crude stockpiles rose by 2.6 million barrels, exceeding estimates but lower than data reported by the American Petroleum Institute (API), which showed a sharp increase of 4.5 million in US inventories. Furthermore, exports rose to 5.1 million BPD, the highest ever, while US imports dropped.

WTI is neutral biased, though once it reclaimed the 20 and 50-day Exponential Moving Averages (EMAs) in the same trading session, a test of the $90.00 per barrel is on the cards. Notable, the Relative Strength Index (RSI) jumped in the last two days after oscillating around the 50-midline. So, as the RSI gathers bullish momentum, if oil buyers reclaim the $90.00 figure, a move towards the 100-day EMA at $94.05 would likely happen.

Technical Levels: Supports and Resistances

XTIUSD currently trading at 88.05 at the time of writing. Pair opened at 84.67 and is trading with a change of 3.65 % .

The pair is trading above its 20 Daily moving average @ 85.3, above its 50 Daily moving average @ 86.29 , below its 100 Daily moving average @ 93.51 and below its 200 Daily moving average @ 97.32

The previous day high was 85.74 while the previous day low was 82.82. The daily 38.2% Fib levels comes at 84.62, expected to provide support. Similarly, the daily 61.8% fib level is at 83.93, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 83.08, 81.49, 80.15
• Pivot resistance is noted at 86.0, 87.33, 88.92

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