Fundamental analysis of WTI

WTI crude oil is trading around 74.00 USD per barrel. During Tuesday's Asian session, WTI crude oil prices had a positive trend despite a decline in the previous session caused by weaker-than-expected economic growth in China. That reversal led to a drop of more than 1.5% on Monday. 

 Investors are eagerly awaiting the release of data from the American Petroleum Institute, reflecting a decline in U.S. crude and refined product inventories. At the same time, they await Wednesday's report from the U.S. Energy Information Administration for more information on U.S. crude oil inventories. U.S. crude oil inventories may decline by about 2.3 million barrels over the week, which could help boost oil prices. Despite the cautious mood caused by disappointing Chinese GDP growth data, market dynamics indicate the possibility of change. With US shale oil production expected to decline to around 9.4 million barrels in August, signs of growing consumer demand may indicate supply constraints. However, the resumption of production from two of the three Libyan oil fields shut down due to protests is expected to boost global supply levels despite possible tightening.

 Overall, the slight rise in WTI crude oil prices during Asian trading is indicative of a likely tightening in US oil supplies. Investors are awaiting further confirmation from industry data. Concerns over weak Chinese economic growth remain, but rising buyer interest and reduced US shale oil production indicate a change in market sentiment. However, these changes could be corrected by the resumption of oil production in Libya.

Technical analysis and scenarios:

WTI crude oil is currently trading at 74.00 USD, bouncing off the lower Bollinger Band at 73.10 USD. The horizontal direction of the Bollinger Bands indicates a trading range and as the price is near the lower boundary of this range, there is potential for an upside move towards the middle band at 75.30 USD.

Main scenario (BUY)

Recommended entry level: 74.90.

Take Profit: 77.00.

Stop loss: 74.20.

Alternative scenario (SELL)

Recommended entry level: 73.50.

Take Profit: 72.00.

Stop loss: 74.20.