WTI corrects sharply from two-year tops, looks to test $66 mark

WTI hit two-year highs at $67.81 after attacks on Saudi facilities.
US stimulus bill passage also offered support to the US oil.
All eyes on stimulus updates, geopolitical tensions and US supply reports.

Dhwani Mehta FXStreet

WTI (futures on NYMEX) is on a steady corrective decline from over two-year highs reached at $67.81 earlier in the Asian session.

The black gold rallied hard following reports that Yemen’s Houthi forces fired drones and missiles at a Saudi Aramco facility at Ras Tanura, which vital to the Kingdom’s petroleum exports.

The upbeat tone around oil prices was also bolstered by the risk-on market mood after the US Senate passed the massive $1.9 trillion stimulus bill over the weekend, bolstering expectations of a quicker economic recovery.

Although, with the US Treasury yields resuming their uptrend, investors turned cautious due to fears of overheating, which dented the appetite for riskier assets, including oil. WTI now trades at $66.34, still up 0.42% on the day.

Last week, the black gold drew support from the OPEC and its allies (OPEC+) decision to rollover oil output cuts next month against expectations of a production hike. Markets ignored the unexpected build in the US weekly crude stockpiles, as it was mainly in response to the Texas deep freeze-led refineries shutdown.

Brent oil surged above $70 a barrel for the first time since the COVID-19 pandemic began.

Attention turns towards the sentiment on Wall Street and Treasuries market for further cues on the prices. Markets also look forward to the US weekly crude supply reports and stimulus developments.

WTI: Technical levels

WTI

Overview
Today last price	66.36
Today Daily Change	0.23
Today Daily Change %	0.35
Today daily open	66.16

Trends
Daily SMA20	60.76
Daily SMA50	55.49
Daily SMA100	49.33
Daily SMA200	44.82

Levels
Previous Daily High	66.27
Previous Daily Low	63.69
Previous Weekly High	66.27
Previous Weekly Low	59.17
Previous Monthly High	63.72
Previous Monthly Low	51.6
Daily Fibonacci 38.2%	65.29
Daily Fibonacci 61.8%	64.68
Daily Pivot Point S1	64.48
Daily Pivot Point S2	62.79
Daily Pivot Point S3	61.89
Daily Pivot Point R1	67.06
Daily Pivot Point R2	67.96
Daily Pivot Point R3	69.65

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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