• WTI is currently trading above a key area of support in the $70.00 region and its 200DMA at $70.37.
  • Prices are down about 50 cents on the day, with market commentators citing concerns about the impact of Omicron.

Front-month WTI futures are currently trading above a key area of support in the $70.00 region, a psychologically important level that also coincides with WTI’s 200-day moving average (which resides at $70.37). In recent trade, WTI dipped under the $70.00 level and the 200DMA to print session lows in the $69.70s, but has since bounced back above the big figure and into the mid-$70.00s. On the day, WTI’s losses currently stand at just over 50 cents, taking losses on the week to about $1.50.

Market commentators have been citing concerns about the impact of Omicron on the global demand outlook as weighing on sentiment in the energy complex in wake of recent Covid-19 restriction tightening across Europe. There is also focus on China, health authorities in the Tainjin region picked up the country’s first Omicron case on Monday, whilst the Zhejiang province, a key manufacturing hub, is said to be fighting its first major Covid-19 cluster of the year. China, one of the world’s major oil consumers, maintains a zero-Covid-19 policy which will be put to the test by Omicron, which is slated to be multiple times more transmissible than the previously dominant delta variant.

The IEA and OPEC released their monthly oil market reports this week. The former warned on Tuesday that Omicron is set to hit the global recovery and, as a result, revised lower their expectations for oil demand growth in 2021 and 2022 by 100K barrels per day due to new travel curbs. That contrasted to the more upbeat tone of the OPEC monthly report, which revised higher its expectations for demand in Q1 2022 and said Omicron would only have a mild, brief impact. Thus, market participants expect the group to agree to press ahead with another 400K barrel per day output hike from February next when they meet at the start of January.

Looking ahead for oil markets, weekly private US inventories will be out at 2130GMT on Tuesday ahead of Wednesday’s official US inventory report at 1530GMT. Oil markets will be focused on the broader macroeconomic story this week, the major moment being the Fed’s policy announcement at 1900GMT on Wednesday. The US economy is experiencing significantly higher inflation pressures that the Fed anticipated just a few months ago (case in point was Tuesday’s much hotter than expected PPI report which briefly weighed on oil prices) and markets expect a hawkish pivot.

WTI

Overview
Today last price 70.26
Today Daily Change -0.73
Today Daily Change % -1.03
Today daily open 70.99
 
Trends
Daily SMA20 72.53
Daily SMA50 77.64
Daily SMA100 73.76
Daily SMA200 70.12
 
Levels
Previous Daily High 72.83
Previous Daily Low 70.55
Previous Weekly High 73.17
Previous Weekly Low 66.17
Previous Monthly High 83.97
Previous Monthly Low 64.32
Daily Fibonacci 38.2% 71.42
Daily Fibonacci 61.8% 71.96
Daily Pivot Point S1 70.09
Daily Pivot Point S2 69.18
Daily Pivot Point S3 67.81
Daily Pivot Point R1 72.36
Daily Pivot Point R2 73.74
Daily Pivot Point R3 74.64

 

 

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.

Feed news Join Telegram

Recommended content


Recommended content

Editors’ Picks

EUR/USD retreats toward 1.0550 as dollar rebounds

EUR/USD retreats toward 1.0550 as dollar rebounds

EUR/USD has lost its traction in the American session and retreated to the 1.0550 area. In the absence of high-tier macroeconomic data releases, the dollar is staging a rebound with the US Dollar Index rising above 103.00 and forcing the pair to edge lower.

EUR/USD News

GBP/USD consolidates its weekly gains below 1.2500

GBP/USD consolidates its weekly gains below 1.2500

GBP/USD has extended its sideways grind below 1.2500 into the second half of the day on Friday with the dollar staying resilient against its rivals. Nevertheless, the pair remains on track to snap a four-week losing streak.

GBP/USD News

Gold loses traction, drops below $1,840

Gold loses traction, drops below $1,840

Gold came under modest bearish pressure in the American session on Friday and dropped below $1,840. The benchmark 10-year US Treasury bond yield stays quiet above 2.8%, helping XAU/USD limit its losses ahead of the weekend.

Gold News

Bitcoin price will bounce to $36,000, but what happens next will leave you shocked

Bitcoin price will bounce to $36,000, but what happens next will leave you shocked

A brief technical and on-chain analysis on Bitcoin price. Here, analysts evaluate where BTC could be heading next. Does the possibility for a cat bounce make sense?

Read more

PANW shows bullish reversal chart pattern after earnings beat

PANW shows bullish reversal chart pattern after earnings beat

PANW stock benefits from continued strong revenue growth. Palo Alto Networks now nearly services half of the Global 2000. PANW stock is showing a bullish reversal pattern on its daily chart.

Read more

Forex MAJORS

Cryptocurrencies

Signatures