WTI climbs sharply more than 2% as demand for oil increases

WTI is set to post back-to-back weekly losses, despite gaining more than 2% on Friday.
US crude oil output shortages were outweighed by gasoline demand; therefore, WTI rose.

Christian Borjon Valencia FXStreet

Western Texas Intermediate (WTI), the US crude oil benchmark, posted gains of more than 2% after US companies related to the energy sector exceeded earnings estimates. Furthermore, a government report flashed increased demand for fuel while crude oil output decelerated. At the time of writing, WTI is trading at $76.61.

Even though WTI is registering daily gains, it would finish the week with losses of 1.67%, extending its fall to two straight weeks concerning an impending slowdown in the United States (US).

The latest news reported by Reuters said that the US Federal Deposit Insurance Corp (FDIC), the US Secretary of Treasure, and the Federal Reserve held meetings with First Republic Bank, which is failing to reach a deal, to improve its financial position.

US crude output fell in February, as reported by the US Energy Information Administration (EIA) report, with production decelerating to 12.5 million barrels per day (bpd), the lowest level since December. Nonetheless, demand for fuel jumped to nearly 20 million bpd, its highest since November.

Meanwhile, the Baker Hughes report for April 28 reported that rigs drilling for oil in the US remained unchanged at 591, on a day that US companies reported earnings.

WTI Technical Levels

WTI US OIL

Overview
Today last price	76.57
Today Daily Change	1.81
Today Daily Change %	2.42
Today daily open	74.76

Trends
Daily SMA20	79.12
Daily SMA50	76.15
Daily SMA100	76.95
Daily SMA200	81.71

Levels
Previous Daily High	75.22
Previous Daily Low	73.98
Previous Weekly High	82.61
Previous Weekly Low	76.69
Previous Monthly High	80.99
Previous Monthly Low	64.39
Daily Fibonacci 38.2%	74.74
Daily Fibonacci 61.8%	74.45
Daily Pivot Point S1	74.09
Daily Pivot Point S2	73.42
Daily Pivot Point S3	72.85
Daily Pivot Point R1	75.32
Daily Pivot Point R2	75.89
Daily Pivot Point R3	76.56

Author

Christian Borjon Valencia

FXStreet

Markets analyst, news editor, and trading instructor with over 14 years of experience across FX, commodities, US equity indices, and global macro markets.

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