Crude oil and expectations of its next movement

Oil on the base side

WTI crude futures rose on Wednesday above the levels of 64 dollars per barrel, after an industrial report showed a decline in US crude inventories, which increased concerns about the scarcity of supply.

Data from the American Petroleum Institute showed that US crude inventories fell by 3.8 million barrels last week, the largest drop in 7 weeks.

Geopolitical risks also remained supportive of prices, as the North Atlantic Treaty Organization (NATO) pledged a strong response to incursions into Russian airspace and Ukrainian drone strikes targeting Russian oil refineries and pipelines.

All this amid expectations of tightening sanctions on Russia, as President Trump informed the UN General Assembly of his readiness to use tough customs measures to push Russia to end the war, however, Trump made the imposition of further US sanctions conditional on tightening the sanctions of NATO allies and the European Union as well.

According to the analysis, Trump demands to stop all purchases of Russian oil.

Oil on the technical side

Crude oil rose for the second day in a row, rebounding from the uptrend levels on the four-hour frame.

We are trying to form more of a harmonic model to target the levels of 68.00 to 69.00 USD per barrel in the medium term.

In the near term, we are targeting the levels of 64.40 and then 65.60 dollars per barrel.

This scenario fails if the USD 61 levels break down.