WTI Crude Futures Decline Amid Rising US Stockpiles and Geopolitical Easing

On Wednesday, WTI crude futures fell below $81 per barrel, marking the third consecutive decline. US crude stockpiles surged by 4.906 million barrels, the largest increase since mid-March, according to API data. Ongoing hopes for a Middle East ceasefire added pressure. Egypt led efforts to restart peace talks between Israel and Hamas. Investors remained cautious ahead of the US Federal Reserve's policy decision, fearing prolonged high interest rates.

With geopolitical risks temporarily easing and the agenda calming down, crude oil prices have undergone a correction of around 8%, showing signs of forming a technical pattern known as a head and shoulders formation. The first support level below the neckline at 80.65 would be around the 200-day moving average, which stands at 80.15. A break below this zone would indicate a formation target of 74. However, the first resistance level to watch before this zone is 78.30.

In the case of upward moves, the first resistance level is 81 and if this level can be breached next target would be 84.45. Sustainability above 84.45 would bring the 85.40 resistance into focus.

Resistance 3	Resistance 2	Resistance 1	Support 1	Support 2	Support 3
85.40	84.45	81	80.55	80.15	78.30