Crude remains under pressureCrude oil spent most of Wednesday morning drifting lower, giving back yesterday’s gains and more. Approaching midday, European time, front-month WTI was hovering above $72 per barrel, which, while off over a dollar from Tuesday’s high, was still a couple of dollars above the lows from last week. The daily MACD has flattened out, suggesting a small decline in upside momentum. On top of this, oil is nowhere near back to ‘oversold’ levels which would indicate a buying opportunity. Fundamentally, nothing major has changed this week, other than the unexpectedly-large build in US crude stocks as reported yesterday by the American Petroleum Institute (API). President Trump’s ongoing tariff programme may weigh on economic activity. The US Federal Reserve has said it is in no hurry to cut interest rates further, a point repeated yesterday in Fed Chair Powell’s testimony to the Senate Banking Committee in Washington. Mr Trump’s determination to increase US oil production could also add to supply, which is price-negative. Meanwhile, global demand growth has been falling thanks to China’s severe economic problems.
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