• WTI crude oil picks up bids to consolidate recent losses at three-week low.
• OPEC+ delivered 100,000 bpd output increase on Wednesday.
• EIA weekly inventories marked surprise build amid fall in exports, lower run of refiners.
• Risk catalysts will be crucial for near-term directions.

WTI crude oil traders lick their wounds near the lowest levels since three weeks, picking up bids to $90.50 during Thursday’s Asian session.

The black gold slumped to the multi-day low the previous day after the weekly stockpile data from the US Energy Information Administration (EIA) marked a notable increase in inventories. In doing so, the commodity prices failed to respect the Organization of the Petroleum Exporting Countries (OPEC) and allies, collectively known as OPEC+, verdict on the output increase.

Reuters cited multiple sources familiar with the matters while confirming that the OPEC+ leaders have agreed to raise the oil output by 100,000 barrels per day (bpd) in September. In a statement published following its meeting, OPEC said that insufficient investment will impact the availability of adequate oil supply to meet growing demand beyond 2023, as reported by Reuters.

Elsewhere, the EIA statement mentioned that the US crude oil inventories rose unexpectedly last week as exports fell and refiners lowered their runs, while gasoline stocks also posted a surprise build as demand slowed, per Reuters. “Crude inventories rose by 4.5 million barrels in the week to July 29 to 426.6 million barrels, the EIA said, compared with analysts' expectations in a Reuters poll for a 600,000-barrel drop,” stated the news.

It’s worth noting that the US-China tussles over Taiwan jostle with the recently hawkish Fedspeak and firmer US data, as well as recession fears to confuse the oil traders. As a result, the latest rebound in the black gold appears less convincing.

To sum up, the energy benchmark prices may remain depressed around the multi-day low despite the recent recovery.

Technical analysis

WTI’s corrective pullback needs validation from the 200-DMA resistance near $94.20, until then the odds of witnessing further downside towards the latest swing low, around $88.35, can’t be ruled out.