- WTI corrects lower and breaches the $72.00 yardstick on Friday.
- The dollar looks unchanged near recent tops.
- Crude oil keeps targeting the $74.00 mark and above.
Prices of the WTI gives away further ground and retest the area below the $72.00 mark per barrel on Friday.
WTI now looks to the $74.00 mark
Crude oil prices trade on the defensive as traders cash up part of the recent strong gains and the dollar returns to the area of recent peaks when gauged by the US Dollar Index.
The sharp rally in the West Texas Intermediate, in the meantime, has been fueled by prospects of higher demand in the next year by both the EIA and the IEA in past sessions in combination with supply concerns stemming from the pass of Hurricane Ida.
Collaborating with the upbeat note around the commodity came another strong drop in weekly US crude oil supplies, as per reports by the API and the EIA on Tuesday and Wednesday, respectively.
Later on Friday, driller Baker Hughes will release its weekly report on US oil rig count, closing the weekly calendar.
WTI significant levels
At the moment the barrel of WTI is losing 1.72% at $71.72 and a breach of $69.86 (55-day SMA) would aim for $67.17 (monthly low Sep.1) and then $65.27 (low Aug.9). On the upside, the next hurdle is located at $73.11 (monthly high Sep.15) followed by $ $74.21 (high Jul.30) and $75.47 (high Jul.13).
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.