WTI Oil Price Analysis for November 24, 2022

WTI crude oil is trending lower in its near-term timeframes and has bounced off the descending channel resistance. The price is reduced to the area of ​​interest of the middle channel and could have some bearish momentum for further declines.

The 100 SMA is below the 200 SMA to indicate that the path of least resistance is to the downside or that selling is more likely to gain traction than to reverse. The 100 SMA lines up with the top of the channel to increase its strength as a ceiling.

The stochastic is still heading up to show that there is bullish momentum and the oscillator has some ground to cover before reflecting overbought conditions. The RSI is also rising after dipping into the oversold region, suggesting that there is bullish pressure.

In that case, crude could still bounce back to the top of the channel at $80 a barrel or try to break higher for a reversal.

Crude oil is under downward pressure on rumors that OPEC may consider raising its production targets. However, renewed geopolitical tensions between Ukraine and Russia may keep global supply of the commodity tight, even as demand increases.

Risk appetite also took a few hits after the FOMC minutes indicated the possibility of further tightening measures. That meeting took place before the latest strong CPI numbers were printed, meaning some policymakers may have moved to an even more dovish stance this time around.

For now, crude oil is getting some support from a larger-than-expected inventory draw, as reported by the American Petroleum Institute and the Energy Information Administration. The EIA printed a reduction of 3.7 million barrels against the expected drop of 2.6 million barrels.

However, this is a smaller draw compared to the previous drop of 5.4 million barrels, suggesting that demand may have slowed.

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