WTI consolidates gains below $72.00 as recovery loses momentum

WTI is staying relatively calm following two-day rally.
Crude oil inventories in the US rose last week.
Eyes on Baker Hughes' weekly US Oil Rig Count data.

Eren Sengezer FXStreet

After suffering heavy losses at the start of the week, crude oil prices managed to rebound sharply in the previous two days. The barrel of West Texas Intermediate (WTI), which fell to its lowest level since May 24 at $65.06 on Tuesday, gained nearly 8% in the second half of the week before going into a consolidation phase. As of writing, WTI was posting small daily gains at $71.80.

Risk flows help oil find demand

Renewed concerns over the spread of the coronavirus delta variant weighing on the energy demand put oil prices under pressure. Moreover, OPEC+ decision to ramp up the group's output by 400,000 barrels per day each month from August put additional weight on WTI's shoulders.

Nevertheless, the positive shift witnessed in risk sentiment and bargain shopping triggered a decisive recovery in oil prices.

Meanwhile, the data from the US showed that crude oil inventories increased by 2.1 million barrels in the week ending July 16, compared to market expectation for a decline of 4.4 million barrels. Later in the day, Baker Hughes Energy Services will release the weekly US Oil Rig Count data.

Technical levels to watch for

WTI

Overview
Today last price	71.54
Today Daily Change	-0.01
Today Daily Change %	-0.01
Today daily open	71.55

Trends
Daily SMA20	72.34
Daily SMA50	70.07
Daily SMA100	66.35
Daily SMA200	57.6

Levels
Previous Daily High	71.86
Previous Daily Low	69.7
Previous Weekly High	74.95
Previous Weekly Low	70.14
Previous Monthly High	74.17
Previous Monthly Low	66.78
Daily Fibonacci 38.2%	71.04
Daily Fibonacci 61.8%	70.52
Daily Pivot Point S1	70.21
Daily Pivot Point S2	68.87
Daily Pivot Point S3	68.04
Daily Pivot Point R1	72.38
Daily Pivot Point R2	73.21
Daily Pivot Point R3	74.55

Author

Eren Sengezer

FXStreet

As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.

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