WTI Crude Holds Strong Above $83 with Sharp Inventory Drop

WTI crude futures remained firm above $83 per barrel, close to their highest levels in two months. This was driven by a substantial decrease in US inventories reported last week and an upbeat forecast for US fuel demand. According to the US Energy Information Administration (EIA), crude stockpiles fell by 12.2 million barrels, surpassing expectations of a 680,000-barrel decline. Moreover, softer US economic data has heightened expectations for an interest rate cut in September, boosting confidence in economic expansion and energy usage.

A decrease in momentum is observed in the upward movement of crude oil. The first resistance is at 83.80, followed by 84.40 and 85.00 if it surpasses this level. On the downside, the initial support is at 83.00, with subsequent levels to watch below being 82.50 and 82.00.

Resistance 3	Resistance 2	Resistance 1	Support 1	Support 2	Support 3
85.00	84.40	83.80	83.00	82.50	82.00