- WTI futures pare losses and return near multi-year highs at $83.95.
- Oil prices consolidate after a six-week rally.
Front-month WTI futures have bounced up at $82.50, regaining previous losses to return to levels near multi-year highs at $83.95. On a broader picture, however, crude prices remain within previous ranges, consolidating after a nine-week rally.
Oil’s rally stalls on renewed COVID-19 fears
Oil prices retreated earlier today as the German Chancellor, Angela Merkel, and Federal Reserve’s Chairman, Jerome Powell, warned about demand disruptions if COVID-19 infections reemerge. The surge of coronavirus cases registered in China and Russia has raised concerns that the pandemic might not be over yet.
Furthermore, the Baker Hughes report has shown the first decline in oil rigs in the last seven weeks. The amount of US rigs drilling for oil declined to 443 this week, from 445 on the previous one, while natural gas fell by one to 542, according to the report.
On Thursday, a report released by the National Oceanic And Atmospheric Administration revealed that the next winter is expected to be warmer than the average in the US, which added negative pressure to crude futures.
WTI prices consolidate below $84.00
Crude prices have remained trading rangebound between 80.75 and 83.90 for most of the week, consolidating after having surged more than 35% over the last two months. On the upside, a clear move above $83.95 might open the path towards the 90.00 psychological area.
On the downside, immediate support lies at intra-day level $82.50 and $81.50 (October 22 low) ahead of October 20 and 21lows at $80.80.
Technical levels to watch
|Today last price||83.52|
|Today Daily Change||1.10|
|Today Daily Change %||1.33|
|Today daily open||82.42|
|Previous Daily High||83.71|
|Previous Daily Low||80.61|
|Previous Weekly High||81.98|
|Previous Weekly Low||78.85|
|Previous Monthly High||76.51|
|Previous Monthly Low||67.02|
|Daily Fibonacci 38.2%||81.79|
|Daily Fibonacci 61.8%||82.53|
|Daily Pivot Point S1||80.78|
|Daily Pivot Point S2||79.14|
|Daily Pivot Point S3||77.68|
|Daily Pivot Point R1||83.89|
|Daily Pivot Point R2||85.35|
|Daily Pivot Point R3||86.99|
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.