WTI advances further towards the 53 mark amid risk-on mood

US stimulus-hopes driven optimism underpins WTI.
Covid fears could likely cap the upside amid renewed lockdowns.
All eyes on the weekly US crude stocks and GDP data.

Dhwani Mehta FXStreet

WTI (futures on NYMEX) is looking to regain the $53 mark, extending the recovery from a brief dip below $52.

The bulls fight back control amid an improvement in the risk sentiment and the resultant US dollar weakness, courtesy of the rising odds of the $1.9 trillion stimulus plan to get a green light from Congress.

However, the gains may remain elusive, as markets assess the impact of the global lockdowns, induced by the new covid strain, on the oil demand recovery prospects.

Further, a rise in the US rigs count by 2 to 387 last week and a bigger-than-expected crude stocks build remain a cause for concern for the oil bulls.

The latest data released by the Energy Administration Information (EIA) last Thursday showed that the US crude inventories rose by 4.4 million barrels in the week to January 15 versus expectations for a decrease of 1.2 million barrels.

Sellers returned after a brief recovery stint, as the sentiment remains undermined by an unexpected build in the US crude stocks data, as published by the American Petroleum Institute (API) late Wednesday.

US crude oil inventories rose 2.6 million barrels in the week to Jan. 15. Vs. expectations of a 1.2 million barrels fall. The surprise rise in the stockpiles re-ignited coronavirus pandemic-led oil demand recovery concerns.

Meanwhile, markets appear to have shrugged off the news that Libya has resumed its oil production after pipeline repairs. Also, Indonesia’s seizure of the Iranian-flagged MT Horse and the Panamanian-flagged MT Freya vessels over suspected illegal fuel transfers off the country’s waters fails to have any significant market impact.

WTI traders now look forward to the weekly US crude inventories data and GDP release for fresh trading impetus.

WTI technical levels

WTI

Overview
Today last price	52.74
Today Daily Change	0.61
Today Daily Change %	1.17
Today daily open	52.11

Trends
Daily SMA20	51
Daily SMA50	47.84
Daily SMA100	43.68
Daily SMA200	39.91

Levels
Previous Daily High	53.14
Previous Daily Low	51.43
Previous Weekly High	53.8
Previous Weekly Low	51.43
Previous Monthly High	49.43
Previous Monthly Low	44.01
Daily Fibonacci 38.2%	52.08
Daily Fibonacci 61.8%	52.48
Daily Pivot Point S1	51.31
Daily Pivot Point S2	50.51
Daily Pivot Point S3	49.6
Daily Pivot Point R1	53.02
Daily Pivot Point R2	53.94
Daily Pivot Point R3	54.73

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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