fundamental News - OIL

U.S. West Texas Intermediate crude oil futures are inching lower early Wednesday after posting a two-sided trade the previous session. Prices are currently hovering just below a seven-year high reached earlier in the week as traders assess the impact of a strong U.S. Dollar, which makes the commodity more expensive for those holding other currencies.

Helping to underpin the market are worries that soaring coal and natural gas prices in China, India and Europe will stoke inflation and slow global growth, reducing oil demand.

At 03:17 GMT, December WTI crude oil futures are trading $79.61, down $0.31 or -0.39%.

Bullish traders are still focused on whether soaring gas and coal prices will lead to more demand for oil products for power generation.

Due to drive into the highest level since 2014, bullish traders are beginning to question valuation which means they are trying to rationalize buying strength at these high levels or playing for a pullback into support areas.

Technical Analysis
The main trend is down according to the daily swing chart. A trade through $80.31 will signal a resumption of the uptrend. A move through $74.67 will change the main trend to down.

The first minor range is $74.67 to $80.31. Its 50% level or pivot at $77.49 is potential support.

The second minor range is $72.82 to $80.31. Its 50% level comes in at $79.57.

The short-term range is $69.05 to $80.31. Its retracement zone at $74.68 to $73.35 is the nearest value area for new buyers.

expectation today: neutral


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