WTI crude oil hovers above $86.00 at eight-year high, Russia, yields and API in focus

WTI grinds higher around multi-year top during four-day uptrend.
Sluggish markets test bulls even as Russia-Ukraine tussles, Iraq-Turkey oil pipeline explosion favor further upside.
Omicron fears battle China’s readiness for more stimulus amid a non-event Asian session.
Weekly private inventory data, risk catalysts are the key.

Anil Panchal FXStreet

WTI crude oil stays on the front foot around the highest levels since October 2014, recently taking rounds to $86.20-30 during Wednesday’s Asian session.

Market’s optimism to overcome the Omicron woes and hopes of further stimulus from China join geo-political risks to keep the oil buyers hopeful. Recently adding to the bullish bias is the US dollar’s refrain from tracking multi-year high yields.

It should, however, be noted that the US policymakers are worried over the price rally and wants to tame the energy boom and are also showing readiness to seek help from the Organization of the Petroleum Exporting Countries (OPEC). “We still have tools at our disposal to deal with rising oil prices and will engage OPEC as needed,” said White House (WH) Spokesperson, per Reuters.

On a price-positive side, Turkish state-owned media Botas reported an oil pipeline explosion and fire that carries around 450kb/d of crude oil from Iraq to Turkey. Furthermore, Russia’s aggression towards Ukraine and Iran’s repeated rejection of the global push towards de-nuclearization are some other favorable factors that favor WTI oil bulls of late.

Read: Russia’s aggression toward Ukraine could escalate into conflict

It’s worth noting that hints of more stimulus from the world’s largest energy consumer, China, also add strength to the oil prices. “China's central bank will roll out more policy measures to stabilize the economy and move ahead of the market curve as downward pressure persists,” People’s Bank of China (PBOC) Vice Governor Liu Guoqiang said on Tuesday per Reuters.

Moving on, the weekly industry inventory figures from the American Petroleum Institute (API), -1.077M prior, will join the US Housing Starts and Building Permits for December to decorate today’s calendar. However, major attention will be given to the risk catalysts.

Technical analysis

Unless dropping back below the 2021 peak of $85.40, WTI crude oil prices are likely to aim for January 2014 low near $91.30. During the run-up, the $90.00 psychological magnet will act as the key hurdle.

Additional important levels

Overview
Today last price	86.24
Today Daily Change	1.04
Today Daily Change %	1.22%
Today daily open	85.2

Trends
Daily SMA20	78.07
Daily SMA50	75.12
Daily SMA100	75.87
Daily SMA200	72.05

Levels
Previous Daily High	85.3
Previous Daily Low	83.54
Previous Weekly High	83.74
Previous Weekly Low	77.44
Previous Monthly High	77.26
Previous Monthly Low	62.34
Daily Fibonacci 38.2%	84.63
Daily Fibonacci 61.8%	84.21
Daily Pivot Point S1	84.05
Daily Pivot Point S2	82.91
Daily Pivot Point S3	82.29
Daily Pivot Point R1	85.82
Daily Pivot Point R2	86.45
Daily Pivot Point R3	87.59

Author

Anil Panchal

FXStreet

Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.

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