WTI bounces back above $72 mark ahead of OPEC monthly report


  • 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

WTI

Overview
Today last price 72.44
Today Daily Change -0.52
Today Daily Change % -0.72
Today daily open 72.47
 
Trends
Daily SMA20 73.2
Daily SMA50 69.52
Daily SMA100 65.87
Daily SMA200 56.73
 
Levels
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

 

 

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