Brent and WTI Retreat as Inventory Draw Meets Softer Momentum

Brent and WTI crude oil prices slid overnight, reversing part of last week’s gains. Brent traded near $68.17, down about 3.7%, while WTI settled around $65.54, a decline of 2.7%.

On the four-hour charts, Brent fell 2.3% and WTI lost 2.2%, confirming intraday pressure ahead of the U.S. open. The latest U.S. Energy Information Administration report showed crude inventories down by 6 million barrels to 420.7 million, about 6% below the five-year average.

Gasoline stocks fell by 2.7 million barrels, while distillates rose by 2.3 million barrels. Refinery utilization climbed to 96.6%. Exports increased and Cushing inventories ticked higher, reflecting shifting trade flows and stronger refinery demand.

Exchange activity underlined caution. CME reported more than 200,000 WTI futures contracts traded in the prior session. Brent volumes on ICE remained consistent with recent weeks, keeping liquidity intact.

ETF positioning stayed muted, with the United States Oil Fund recording only modest share creations and redemptions as of August 22. On the policy front, OPEC maintained its focus on market stability.

The International Energy Agency projected 2025 oil demand at 104.4 million barrels per day, driven mainly by non-OECD consumption. These signals frame the supply-demand outlook against which traders calibrate positioning.

Technical indicators point to weakening momentum. On the daily charts, Brent’s Relative Strength Index hovered near 50 and WTI’s near 52, signaling neutral conditions after last week’s rise.

On the four-hour frames, RSI slipped into the mid-30s, highlighting short-term selling pressure. Moving Average Convergence Divergence flattened on daily charts and turned lower on shorter timeframes, indicating fading upside momentum.

Prices hovered near mid-Bollinger bands on the daily view and pressed against the lower bands on the four-hour view, marking a volatility expansion downward.

The Global Liquidity Index NDQ, tracked as the yellow line on the charts, turned lower from late-July peaks, signaling tightening conditions that weigh on risk assets.

Market levels are now well defined, with Brent support near $68 and resistance close to $70. WTI shows support around $65 and resistance near $67.

The Brent-WTI spread holds near two dollars, shaping arbitrage and export economics. The narrative remains balanced. Official U.S. data confirmed near-term supply tightness, but overnight trade showed diminished momentum.

Futures volume stayed orderly, ETF flows remained modest, and policy guidance held steady. Technical signals suggest consolidation, with markets awaiting the next inventory update or geopolitical development to define direction.

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