WTI rises to $68.00 on USD weakness after FOMC decision

• WTI broke above Asian session highs after Fed’s meeting. 
• US Dollar pulled back across the board and commodity prices recover on the statement. 
• Earlier today, data showed an increase in US crude oil supplies. 

Prices of the West Texas Intermediate recovered ground following the decision and the statement of the Federal Reserve. After finding support near $66.90, it stabilized around $67.40. Following the release of the FOMC statement jumped to $68.10, hitting a fresh daily high. 

Near the end of the session, the barrel is hovering around $68.00 as the US dollar moves off American session lows. 

The US central bank kept rates unchanged as expected. In the statement, the FOMC mentioned that core inflation has moved closer to the 2% target. According to the Committee, it is expected to stay near ‘symmetric’ target over the medium term, signaling that it could remain above that level without creating concerns for policymakers. Regarding the economic outlook, risks were characterized as ‘roughly balanced’. The US Dollar lost strength after the meeting. 

Crude is about to end the day higher with a gain of 1%. Earlier today, data showed another increase in US crude oil inventories last week by 6.218 million barrels, above the 0.739 million barrels of market consensus. 

WTI Levels to watch 

To the upside, resistance levels might be seen at $68.15 (May 2 high), $69.00 and $69.55 (Apr 18 high). On the flip side, support might lie at $67.70, $66.80/98 (May 1 & 2 low) and $66.70.