Oil Price Forecast: WTI snaps five-day rise to revisit $24.00, EIA data eyed

• WTI declines from multi-day high amid the latest risk-off.
• A slump in global activity numbers jostles with hopes of the economic restart.
• API registered another oil inventory build, EIA figures awaited.

WTI June Futures on NYMEX drop to $24.20, intraday low of $24.05, down -1.60% on a day, amid the early Wednesday’s trading. While there hasn’t been any oil-specific catalyst for the recent declines, downbeat PMIs from the key global economies seem to have exerted downside pressure on the black gold.

While joining the league including the US, UK and the European Union (EU), Hong Kong’s recent PMI data suggest a further weakening of the global activities, which in turn weighs on the energy demand.

Recently, the weekly private inventory data from the American Petroleum Institute (API) suggested another increase in the oil stockpiles worth of 8.44 million barrels versus 9.978 million barrels prior.

It should also be noted that the oil benchmark’s earlier upside could be attributed to the hopes of the economic restart in the US and the EU.

Risk-tone also gets heavy with a little on economic calendar amid Japan off and exerts downside pressure on the commodity. While portraying the same, the S&P 500 Futures drop 0.12% to 2,855 by the press time.

Moving on, the official weekly inventory data from the Energy Information Administration (EIA), expected 8.125 million barrels versus 8.991 barrels prior, could offer immediate direction to the oil prices. Though, major attention will be given to the virus/trade updates.

Technical analysis

The oil benchmark seems to take a U-turn from the short-term trend channel’s resistance, currently near $26.50, which in turn can fetch the quote towards April 21 high near $22.60.