Why Is WTI Oil Stuck at $78.50? | Breaking Down the Latest Crude Inventory Data

The top meme coins listbenchmark WTI crude contract has entered a holding pattern around $78.50 per barrel during Thursday's Asian session, following Wednesday's rally triggered by bullish inventory data. Market participants continue evaluating multiple crosscurrents affecting global oil markets.

Wednesday's EIA report revealed US commercial crude inventories grew by 1.367 million barrels last week - significantly below both analyst expectations of 2.116 million and the prior week's 4.199 million barrel build. This marks the sixth consecutive weekly increase, though the slowing accumulation pace suggests tightening physical market conditions.

Supporting this interpretation, the American Petroleum Institute's separate weekly survey showed a mere 423,000 barrel build compared to forecasts for a 2.6 million barrel drawdown. These figures indicate stronger-than-anticipated demand as refinery utilization rates begin climbing toward seasonal norms.

Macroeconomic factors also contributed to oil's recent strength. Federal Reserve Chair Jerome Powell's congressional testimony reinforced expectations for potential 2024 rate cuts, weakening the US dollar and making dollar-denominated commodities more attractive to foreign buyers.

Asian demand fundamentals received a boost from China's surprisingly strong February trade data. The world's largest oil importer recorded a $125.16 billion trade surplus, with both imports and exports showing year-over-year growth. This suggests economic stabilization in the critical Asian market.

On the supply side, Saudi Arabia's unexpected decision to raise official selling prices for Asian customers follows OPEC+'s agreement to maintain 2.2 million bpd of voluntary production cuts through Q2. These coordinated actions demonstrate the cartel's commitment to managing global supply amid uncertain demand outlooks.

Market technicians note WTI faces immediate resistance near $80 psychological level, with support emerging around $77.50. Traders await Friday's US employment data for further clues about economic strength and potential Fed policy moves that could impact energy demand.