WTI crude oil continues to fall sharply, having already lost nearly 5% today (OIL.WTI -4.67%, trading at 88.55).
The sell-off was triggered by a post by Donald Trump on Truth Social, in which the US President announced that Europe had agreed to release a “huge amount” of its stockpiled diesel, and that the process was due to begin immediately.
These reports were confirmed by French President Emmanuel Macron: according to him, the G7 has decided to release reserves of both diesel and crude oil, with the entire process to be spread over four months. Earlier market reports pointed to a coordinated emergency release of around 100 million barrels within the G7 — the decision was taken in the wake of rising fuel prices ahead of the US elections in November.
Spreading the release of stocks over four months means a sustained, elevated supply of fuels over a longer period, which not only weighs on diesel but also quickly leads to a fall in crude oil prices. WTI broke through local support levels and fell to its lowest point in many sessions, well below the falling 20-day EMA (91.53), confirming the dominance of the supply side.
From a technical perspective, the picture remains weak — the price is trading below a falling moving average, and the RSI (14) has fallen to 27, which is close to oversold territory. This does not rule out a short-term rebound, but as long as prices remain below the 20-period EMA, the bears retain the upper hand. The reaction to the recently breached support levels will be crucial — a recovery to these levels would be the first sign that selling pressure is easing.
Daily Summary: US100 Hits New Highs on Weak NFP 🚨
BREAKING: US NFP data surprises to the downside; USD dips🔥
🟡Gold takes a breath, because of oil, not NFP
Market Wrap: Tech stocks stabilize sentiment in Europe 📈 Adidas and Puma resilient despite Nike’s sell-off?
The content of this report has been created by XTB S.A., with its registered office in Warsaw, at Prosta 67, 00-838 Warsaw, Poland, (KRS number 0000217580) and supervised by Polish Supervision Authority ( No. DDM-M-4021-57-1/2005). This material is a marketing communication within the meaning of Art. 24 (3) of Directive 2014/65/EU of the European Parliament and of the Council of 15 May 2014 on markets in financial instruments and amending Directive 2002/92/EC and Directive 2011/61/EU (MiFID II). Marketing communication is not an investment recommendation or information recommending or suggesting an investment strategy within the meaning of Regulation (EU) No 596/2014 of the European Parliament and of the Council of 16 April 2014 on market abuse (market abuse regulation) and repealing Directive 2003/6/EC of the European Parliament and of the Council and Commission Directives 2003/124/EC, 2003/125/EC and 2004/72/EC and Commission Delegated Regulation (EU) 2016/958 of 9 March 2016 supplementing Regulation (EU) No 596/2014 of the European Parliament and of the Council with regard to regulatory technical standards for the technical arrangements for objective presentation of investment recommendations or other information recommending or suggesting an investment strategy and for disclosure of particular interests or indications of conflicts of interest or any other advice, including in the area of investment advisory, within the meaning of the Trading in Financial Instruments Act of 29 July 2005 (i.e. Journal of Laws 2019, item 875, as amended). The marketing communication is prepared with the highest diligence, objectivity, presents the facts known to the author on the date of preparation and is devoid of any evaluation elements. The marketing communication is prepared without considering the client’s needs, his individual financial situation and does not present any investment strategy in any way. The marketing communication does not constitute an offer of sale, offering, subscription, invitation to purchase, advertisement or promotion of any financial instruments. XTB S.A. is not liable for any client’s actions or omissions, in particular for the acquisition or disposal of financial instruments, undertaken on the basis of the information contained in this marketing communication. In the event that the marketing communication contains any information about any results regarding the financial instruments indicated therein, these do not constitute any guarantee or forecast regarding the future results.