- WTI rebounds amid the US dollar’s decline, ahead of OPEC monthly report.
- A likely OPEC+ deal, falling US crude supplies weigh on oil prices.
- Covid concerns and China growth slowing keep risk traders unnerved.
WTI (futures on Nymex) is attempting a solid rebound from near the $71.70 region, as it regains the $72 mark, helped by the renewed weakness in the US dollar across the board.
Profit-taking after the recent sell-off cannot be ruled out ahead of the key OPEC monthly report, which is expected to include the cartel’s outlook on the oil market for 2022.
The black gold tumbled nearly 2% on Wednesday on heightened expectations of tighter supplies following a Reuters report that Saudi Arabia and the United Arab Emirates (UAE) have reached a compromise deal in a standoff over OPEC and its allies (OPEC+) crude output hike.
Meanwhile, the Energy Information Administration (EIA) reported that the US crude stockpiles fell for the eighth straight week last week, exacerbating the pain in WTI price. Crude stockpiles dropped 7.897 million barrels last week vs. expectations for a draw of 4.359 million barrels, the EIA reported a day before.
Despite the rebound, the US oil remains vulnerable amid the rapid spread of the Delta covid strain globally and concerns over slowing growth in China – the world’s second-biggest oil consumer. The risk-off market mood is likely to keep the upside attempts limited in the higher-yielding oil.
Next of relevance for oil traders remain the OPEC monthly report and the sentiment on Wall Street. Also, Fed Chair Jerome Powell appears again to testify on the Monetary Policy Report, impacting the dollar’s price action.
WTI technical levels to consider
|Today last price||72.44|
|Today Daily Change||-0.52|
|Today Daily Change %||-0.72|
|Today daily open||72.47|
|Previous Daily High||74.92|
|Previous Daily Low||71.76|
|Previous Weekly High||76.4|
|Previous Weekly Low||70.28|
|Previous Monthly High||74.17|
|Previous Monthly Low||66.78|
|Daily Fibonacci 38.2%||72.97|
|Daily Fibonacci 61.8%||73.71|
|Daily Pivot Point S1||71.18|
|Daily Pivot Point S2||69.9|
|Daily Pivot Point S3||68.03|
|Daily Pivot Point R1||74.34|
|Daily Pivot Point R2||76.21|
|Daily Pivot Point R3||77.49|
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Follow us on Telegram
Stay updated of all the news
EUR/USD stays below 1.0900 as Q1 comes to an end
EUR/USD has lost its traction and declined below 1.0900 in the American session on Friday. Quarter-end flows seem to be allowing the US Dollar find some demand but the risk-positive market environment seems to be limiting the pair's downside ahead of the weekend.
GBP/USD trades below 1.2400, looks to post weekly gains
GBP/USD has edged lower after having tested 1.2400 earlier in the day but remains on track to end the third straight week in positive territory. The upbeat mood remains intact after soft PCE inflation data from the US, making it difficult for the US Dollar to continue to gather strength.
Gold tries to stabilize near $1,980 following earlier spike
Gold price has returned to the $1,980 area following a spike above $1,987 with the initial reaction to lower-than-expected PCE inflation figures from the US. Meanwhile, the benchmark 10-year US Treasury bond yield stays in the red near 3.5%, providing support to XAU/USD.
Will Dogecoin price pull an XRP and rally 60% next week?
Dogecoin price has been in a tight range bound movement since November 22. The recent recovery above the range low looks promising and hints at an explosive move for next week.
Week ahead – Nonfarm payrolls to set the tone for US dollar
With the banking turmoil receding, market participants will turn their attention back to economic releases. The spotlight will fall on the US employment report.