WTI approaches $95.00 amid cautious optimism over Ukraine-Russia crisis
- WTI crude oil prices pick up bids to pare recent losses around three-week low.
- Risk-on mood battles bearish EIA inventories, IEA demand forecasts to portray lackluster moves.
- Ukraine, China headlines become more important for immediate directions.
WTI crude oil prices stay in the recovery mode, despite being sluggish at around $94.55 during Thursday’s initial Asian session.
The black gold offered a choppy end to Wednesday, following a volatile day, amid mixed catalysts concerning the risk sentiment and energy market.
On the positive side, Ukraine praises the softness of Russian diplomats’ voice and the International Court of Justice in The Hague also ordered Moscow to abandon the Ukraine invasion, which in turn favors risk-on mood.
Also favoring the risk-on mood is a softer COVID-19 daily count from China, as well as headlines suggesting the government’s readiness to propel economic growth, by China Vice Premier Liu He.
Elsewhere, weekly inventory data from the US Energy Information Administration (EIA), 4.345M versus -1.375M expected and -1.863M prior, challenged oil buyers. Additionally weighing the energy prices is the International Energy Agency’s (IEA) lowering of the Q2-Q4 2022 forecast for world oil demand, by 1.3 million BPD amidst the Ukraine crisis.
That said, WTI crude oil prices also get hammered by the Fed’s hawkish rate-hike, even if Chairman Jerome Powell couldn’t lift the greenback.
Moving on, risk catalysts are likely to entertain WTI crude oil buyers with China and Ukraine news being the major ones.
Technical analysis
50-DMA and a one-week-old previous resistance line, respectively around $92.20 and $90.45, restrict the short-term downside of the black gold whereas the recovery moves need to cross the last Friday’s swing high near $107.00 to regain the buyer’s confidence.
