WTI bounces from 10-day SMA on Saudi Aramco’s comments

WTI oil tick higher in Asia as Saudi's Aramco sees recovery in demand.
Iraq plans to cut output in August and September.

Omkar Godbole FXStreet Contributor

Oil giant Saudi Aramco’s upbeat comments on potential demand conditions look to be powering gains in the black gold on Monday.

At press time, West Texas Intermediate (WTI), the North American oil benchmark, is trading at $41.67 per barrel, having defended the 10-day simple moving average (SMA) support of $41.27 a couple of hours ago.

Saudi Aramco’s Chief Executive Amin Nasser said on Sunday that oil demand is likely to rebound in Asia with the gradual easing of coronavirus lockdown restrictions. “Look at China, their gasoline and diesel demand is almost at pre-coronavirus levels. We are seeing Asia is picking up and other markets (too),” Nasser said, according to Reuters.

Additional optimism may be stemming from Iraq’s plans to cut its oil production by 400,000 barrels per day in August and September to compensate for the oversupply of the past three months. Iraq’s oil minister Ihsan Abdul Jabbar said on Friday that his country is committed to cut supply in August and September under an OPEC+ supply pact.

Looking forward, the black gold remains vulnerable to potential risk aversion in the global equities due to lingering coronavirus concerns and political deadlock in Washington over an additional coronavirus support package.

Technical levels

WTI

Overview
Today last price	41.87
Today Daily Change	0.13
Today Daily Change %	0.31
Today daily open	41.74

Trends
Daily SMA20	41.21
Daily SMA50	39.81
Daily SMA100	32.82
Daily SMA200	43.3

Levels
Previous Daily High	42.38
Previous Daily Low	41.26
Previous Weekly High	43.62
Previous Weekly Low	39.75
Previous Monthly High	42.52
Previous Monthly Low	38.73
Daily Fibonacci 38.2%	41.69
Daily Fibonacci 61.8%	41.95
Daily Pivot Point S1	41.21
Daily Pivot Point S2	40.67
Daily Pivot Point S3	40.08
Daily Pivot Point R1	42.33
Daily Pivot Point R2	42.92
Daily Pivot Point R3	43.46

Author

Omkar Godbole

FXStreet Contributor

Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.

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