WTI snaps losing streak as US crude stockpiles fall

• WTI Crude rebounds 0.75% on Wednesday, trading near $65.20 after a steep two-day slide.
• EIA reports a larger-than-expected 5.836 million-barrel drop in US crude inventories.
• RSI slips to 47, WTI holds above key support at $64.50, resistance at $66.60.

West Texas Intermediate (WTI) Crude Oil reverses course during the American session on Wednesday, snapping a two-day losing streak after spending much of the day drifting lower. The move came as traders digested easing geopolitical tensions between Iran-Israel and fresh EIA data showing a notable decline in US crude stockpiles.

At the time of writing, WTI is trading near $65.20, recovering around 0.75% on the day. This comes after a brutal two-day slide of nearly 13%, which was the sharpest two-day decline since 2022.

A major factor supporting the rebound in Oil prices is the larger-than-expected drawdown in US crude and fuel inventories. The latest data from the Energy Information Administration (EIA) showed a decline of 5.836 million barrels for the week ending June 21, far exceeding expectations for a modest 0.6 million-barrel drop. This marks the fifth straight weekly fall in stockpiles, reinforcing signs of tightening supply conditions amid steady summer demand.

Geopolitical tensions, another dominant theme for Oil traders, took a backseat as a tentative ceasefire between Israel and Iran showed signs of holding after a rocky start. While early violations by both sides had raised doubts, global markets are cautiously embracing a "risk-on" mood, with equities firming and oil volatility easing.

However, the ceasefire remains fragile. While US President Donald Trump claimed that recent US missile strikes had "totally obliterated" Iran's nuclear facilities, intelligence assessments suggest the damage only delayed Tehran's nuclear program by a few months. US President Donald Trump has since reiterated that Washington remains ready to act again should Tehran resume its nuclear ambitions.

This complex geopolitical backdrop continues to influence market sentiment. While some of the geopolitical risk premium has been unwound, any renewed flare-up could rapidly shift momentum and reignite bullish pressure on Oil.

After tumbling nearly 13% over the past two sessions, WTI Crude has found interim support at $64.50 - a key horizontal level that acted as resistance since mid April. The price is attempting to stabilize just above this zone, currently trading near $65.20.

The Relative Strength Index (RSI) has slipped to 47, reflecting weakening momentum without yet signaling oversold conditions. Price is hovering near the middle Bollinger Band--the 20-day SMA at $66.60--which now acts as key resistance.

A break below $64.50 could expose downside toward $62.00 and $60.00. On the flip side, reclaiming $66.60 would open the door to $68.00 and potentially $70.00. For now, WTI remains range-bound, with traders eyeing upcoming US GDP and PCE data for fresh direction.