During the New York session, WTI rose as the general US Dollar fell by more than 1%, while WTI’s exports reached an all-time record as a result of domestic refiners operating at a higher capacity. WTI is trading at $88.05 per barrel at the time of writing, after reaching a daily high of $88.38 per barrel.
The US Dollar Index, a measure of the dollar’s value relative to a basket of other currencies, is down for the second consecutive day by more than 1 percent, falling from 111.135 highs to 109.774, which is positive for the price of oil.
In addition, the Organization of Petroleum Exporting Countries’ (OPEC) decision to reduce oil production boosted the WTI price as the market prepares for a tighter supply in the coming months. In addition, the shortage of Russian goods caused by an energy embargo will have an effect on inflation, according to a letter cited by Bloomberg from Goldman Sachs.
In the interim, US oil stockpiles increased by 2.6 million barrels, above estimates but falling short of figures from the American Petroleum Institute (API), which indicated a significant increase of 4.5 million barrels. Furthermore, exports increased to an all-time high of 5,1 million BPD, while imports decreased.
WTI is neutrally biased, but a challenge of $90.00 per barrel is possible after it recaptured the 20-day and 50-day Exponential Moving Averages (EMAs) in the same trading session. Notable, the Relative Strength Index (RSI) rose in the previous two days after bouncing around the 50-midpoint. Consequently, if oil buyers recapture $90.00 as the RSI gains positive momentum, a move towards the 100-day EMA at $94.05 is probable.
