Oil prices accelerate their reversal as US stocks increase beyond expectations The outlook of higher rates for a longer time is increasing concerns about a lower demand for oil Thesefears have offset theimpactofgeopolitical risks. WTI crude futures broke lower on Wednesday after a period of hesitation hammered by the higher-for-longer Fed outlook coupled with larger-than-expected US oil stocks. The weekly EIA report revealed that US Oil stocks increased by 2.735 million barrels.
This has offset the positive impact on Crude from the increasing geopolitical risks and from news reporting a US threat to reimpose the ban on Venezuelan Oil if President Maduro fails to meet his commitment to fair elections this year. The broader trend remains bullish although today’s bearish reaction is suggesting a deeper correction. A confirmation below previous highs at $82.85 puts the $80.50 area on the bears’ focus. On the upside, bulls should regain the $84.