WTI: Bulls regain poise, $ 71 back on sight ahead of US rigs data

Reverses Trump’s comments-led slide, as tightening supplies underpin.
Bulls look forward to the weekend OPEC+ Algiers meeting for fresh boost.

Dhwani Mehta FXStreet

WTI (oil futures on NYMEX) caught a fresh bid-wave last hour and moved closer to the $ 71 mark, extending its recovery from yesterday’s slump, triggered by the US President Trump’s comments.

Trump urged the Organization of the Petroleum Exporting Countries (OPEC) to lower prices, saying on Twitter “they would not be safe for very long without us, and yet they continue to push for higher and higher oil prices”.

However, the sentiment around the black gold remains underpinned by expectations of tightening global supplies. The weekly US EIA crude stocks data showed a drawdown in crude stockpiles for the fifth straight week to 3-1/2-year lows in the week to Sept. 14 while looming supply disruption risks from the US sanctions on Iran continue to lend support to the prices.

Markets now await Friday’s US rigs count data for fresh trading impetus ahead of the weekend’s meeting between the OPEC and its allies (OPEC+) likely to be held in Algeria.

WTI Technical Levels

Resistances: $ 71.34 (2-week high), $ 71.76 (daily R1/ Fib R2), $ 72 (round number).

Supports: $ 70.56 (daily pivot), $ 69.98 (5 & 20-DMA), $ 68.56 (50-DMA).

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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