FX.co ★ HiDe_N_SeEk | CL/Crude Oil

As traders react to the EIA Weekly Petroleum Status Report and concentrate on the impending summit between U.S. President Trump and China's Xi, WTI oil declines. In advance of his meeting with Xi, Trump has already arrived in Beijing. It is anticipated that the presidents will talk about Iran's condition and reciprocal trade. According to analysts, China purchases over 90% of Iran's oil exports. Crude stockpiles decreased by -4.3 million barrels from the previous week, according to the EIA report, while analysts had predicted a decrease of -2.1 million barrels. Crude inventories are currently 0.3% lower than the five-year average for this time of year. Analysts predicted that total motor gasoline stockpiles would drop by -2.85 million barrels, while they actually fell by -4.1 million. Inventory of distillate fuel rose by +0.2 million barrels. Crude oil imports into the United States increased by +424,000 barrels per day, averaging 5.9 million barrels per day. The average amount of crude oil imported during the last four weeks was 5.8 million barrels per day. As the United States continued to sell oil from its strategic reserves, the Strategic Petroleum Reserve decreased from 392.7 million barrels to 384.1 million barrels. The amount of oil produced domestically rose from 13.573 million bpd to 13.71 million bpd. It should be mentioned that domestic oil production has at last surpassed 13.6 million barrels per day. Increased domestic oil output could put some pressure on the price of oil. WTI oil is attempting to return below the $101.00 level after failing to break over the resistance at $102.00 to $102.50. WTI oil will go toward the psychologically significant $100.00 mark if this attempt is successful. A move below $100.00 will allow the support level between $97.00 and $97.50 to be tested.

As traders respond to Trump's remarks regarding Iran, WTI oil is under intense pressure. Negotiations with Iran are "proceeding nicely," according to President Trump. According to recent reports, the United States and Iran intend to reopen the Strait of Hormuz and extend the ceasefire by sixty days. It's interesting to note that Trump also asked Saudi Arabia and Qatar to sign the Abraham Accords, which have started the process of diplomatic normalization between Israel and a number of Arab nations. This action is seen by markets as an indication that Trump intends to draft a comprehensive peace agreement that will govern the Middle East for many years to come. Whether Saudi Arabia and Qatar are prepared to sign the Abraham Accords is still up in the air. An Iranian group reportedly traveled to Qatar to talk about the status of the negotiations. The possible release of Iranian assets that have been frozen is addressed, as the governor of the Iranian central bank was among those who visited Qatar. Notably, Iran has ceased discussing a toll system for the Strait of Hormuz. Iran feels that the agreement should cover everything, even Israel's campaign against Hezbollah in Lebanon, but the nation intends to charge for "navigation services." Israel pointed out that in order to protect its security, the nation upheld freedom of action. Due to the U.S. Memorial Day holiday, the market volume is low. Technically speaking, WTI oil is attempting to settle below the $91.00–$91.50 support level. WTI oil will go toward the next support level, which is in the $84.00–$85.00 range, if this attempt is successful. There is a lot of room for further downward momentum in the near future because the RSI is in the moderate range.