WTI Tests 83.48 Resistance as Crude Inventories Slide

U.S. crude inventories fell 1.7 million barrels in the week ended August 2, the Energy Information Administration reported. Commercial stocks stood at 409.7 million barrels, about 6% below the five-year seasonal average. Refinery utilization edged to 96.2%, reflecting strong summer fuel demand. The Strategic Petroleum Reserve dropped 5.1 million barrels to 311.4 million – the lowest since 1983.

WTI crude traded near $82.10 on Tuesday, extending a rally from the July low near $67.00. The move pushed prices through the 50-day and 100-day moving averages at $81.80 and $82.47. WTI now faces a cluster of resistance: the 61.8% Fibonacci retracement of the recent decline at $83.48 and a descending trendline from April. A break above that zone would open the way to $88.66 and $93.71, according to technical analysis by Arslan, a finance MBA and behavioral finance researcher. Support sits at $80.34, then $77.21 and $73.43.

Brent crude traded at $88.69, also above its 50- and 100-day moving averages. The contract faces a similar descending trendline resistance and the 61.8% retracement at $87.37. A close above the trendline would improve the medium-term outlook, traders said. Resistance beyond that is $91.82, $98.03 and $105.64. Support lies at $87.37, $84.12 and $80.83.