West Texas Intermediate (WTI) crude moved higher on Wednesday after an early pullback, with prices trading near $59.10 at the time of writing, up almost 1.00% on the session. The gains come as markets digest the latest US Energy Information Administration (EIA) report, which delivered a weaker demand signal.
The weekly EIA release showed a crude inventory build of 574K barrels, defying expectations for a 1.9 million-barrel draw. Gasoline and distillate stocks also posted sizeable increases, reinforcing concerns about slowing consumption.
Geopolitical tensions and supply concerns persist
Broader sentiment remains fragile as geopolitical risks stay elevated. High-level discussions between the United States and Russia ended with no tangible progress toward resolving the Ukraine conflict, adding to risk aversion. At the same time, persistent worries about global oversupply continue to act as a drag on the medium-term outlook.
Technical setup still favors bears
From a technical perspective, WTI remains capped below a descending trendline on the daily chart, indicating that bears still control the broader structure. The 21-day Simple Moving Average (SMA), aligned with the trendline near $59.50, forms immediate resistance.
A decisive break above this level would expose the next resistance zone at $60.50–$62.00, reinforced by the 100-day SMA. A sustained move beyond this region is needed to meaningfully reduce bearish pressure.
On the downside, initial support is seen around $58.00, followed by the November lows near $57.00. A break below this area could pave the way for deeper losses.
Momentum indicators show mild improvement
Momentum signals present a mixed but slightly constructive near-term picture. The MACD has edged marginally above the signal line near the zero level, while its small positive histogram suggests easing bearish momentum.
The RSI, hovering around 48, reflects neutral conditions as it drifts toward the 50 midpoint. Meanwhile, the ADX at 12.7 indicates the absence of a strong trend, highlighting the lack of conviction in either direction.
