WTI appreciates further and reaches $40.40 high

WTI futures bounce up from $39.09 to reach $40.40 high.
China's oil imports increase boosts crude prices.
On a wider perspective, oil prices remain sideways around $40.

FXStreet Team FXStreet

Front-month WTI futures are bouncing up strongly on Tuesday to regain most of the ground lost on Monday. The US benchmark crude price has surged nearly 2% on the day, favoured by news about the increase of crude imports in China

Chinese crude imports boost oil prices

Crude imports rose to the equivalent of 1.18 million barrels in September in China, according to data by the General Administration of Customs. This 2.1% month-on-month increment has eased market concerns about the negative impact on the second COVID-19 wave on global demand for oil.

Market optimism about Chinese figure, however, has been dampened by ongoing concerns about an excess of supply. Libya has reported that its largest oil field has resumed its production, which might double the country’s output, while the end of the oil workers’ strike in Norway and the return to activity in the Gulf of Mexico are weighing further on prices.

WTI prices consolidate around $40

From a technical point of view, WTI futures remain capped below $40.40 (50-day SMA) with next potential resistance at $41.45 (Sept. 18, Oct 9 highs) ahead of $43.75 (Aug. 26 high). On the downside, immediate support lies at $40.00 (100-day SMA) and below here, $39.09 (Oct.12 low) and the 200-day SMA, now around $38.30.

Technical levels to watch

WTI

Overview
Today last price	40.56
Today Daily Change	0.81
Today Daily Change %	2.04
Today daily open	39.75

Trends
Daily SMA20	39.93
Daily SMA50	40.88
Daily SMA100	40.02
Daily SMA200	39.26

Levels
Previous Daily High	40.78
Previous Daily Low	39.31
Previous Weekly High	41.68
Previous Weekly Low	37.13
Previous Monthly High	43.56
Previous Monthly Low	36.43
Daily Fibonacci 38.2%	39.87
Daily Fibonacci 61.8%	40.22
Daily Pivot Point S1	39.11
Daily Pivot Point S2	38.47
Daily Pivot Point S3	37.63
Daily Pivot Point R1	40.59
Daily Pivot Point R2	41.42
Daily Pivot Point R3	42.06

Author

FXStreet Team

FXStreet

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