WTI Steady at $69.50 Amid Inventory Surge & Brazil Exports.
WTI holds steady around $69.50 amid rising U.S. crude inventories and expectations of increased Brazilian oil exports
FUNDAMENTAL OVERVIEW:
West Texas Intermediate (WTI) crude paused its three-day rally, trading near $69.60 per barrel in early European hours Thursday, pressured by a surprise rise in U.S. crude inventories and renewed export prospects from Brazil.
According to the U.S. Energy Information Administration (EIA), crude stocks surged by 7.698 million barrels last week, marking the largest gain in six months and defying expectations for a 2.5-million-barrel decline. The unexpected build weighed on oil prices, signalling potential oversupply.
Further pressure emerged after Reuters reported that Brazilian energy firms may resume oil exports to the U.S. following exemptions on some products from April’s 10% tariff. However, ongoing uncertainty around the July 9 tariff announcement has limited shipments, creating ambiguity in export flows.
Despite bearish factors, oil prices may find renewed support amid broader geopolitical tensions. U.S. President Donald Trump has intensified his stance on the Ukraine conflict, threatening secondary tariffs of 100% on Russia if no progress is seen within 10–12 days. He also warned of a 25% tariff on Indian exports starting Friday, criticizing India’s purchases of Russian energy. Additionally, Washington cautioned China over continued imports of Russian and Iranian crude, threatening significant penalties—further raising supply disruption risks.
CRUDE OIL TECHNICAL ANALYSIS CHART:
Technical Overview:
Crude Oil is trading within an up channel.
Crude Oil is moving above all the Moving Averages (SMA).
The Relative Strength Index (RSI) is in the Buying Zone, while the Stochastic oscillator suggests a Positive trend.
Immediate Resistance level: 70.40
Immediate support level: 67.55
HOW TO TRADE CRUDE OIL
Following a strong uptrend, Crude Oil saw a sharp decline toward a key support zone, which held firm and prompted a rebound after a period of consolidation. Currently, Oil has broken through a major resistance area and is pulling back toward a crucial support level. If this level holds, further upside momentum could follow.
