WTI dips to a three-week low around $86.95 amid the stronger USD

WTI loses momentum for the fifth straight day on Tuesday.
Investors fear the impact of higher interest rates on oil consumption.
The extension of the production cuts by Saudi Arabia and Russia could boost the WTI prices higher.
Oil traders await the weekly Crude Oil Stock data, US JOLTS Job Openings due on Tuesday.

Lallalit Srijandorn FXStreet

Western Texas Intermediate (WTI), the US crude oil benchmark, is trading around $86.95 so far on Tuesday. WTI trades in negative territory for the fifth consecutive day and loses traction to a three-week low as the US Dollar (USD) resumes its upward path and investors worry about the impact of higher interest rates on oil consumption.

Data released on Monday revealed that the US ISM Manufacturing PMI came in at 49.0 in September from 47.6 in the previous reading, above the market consensus of 47.7. This figure showed that business activity in the US manufacturing sector continued to contract. The upbeat US data lifted the USD across to board and exerted some selling pressure on the WTI prices. This figure could convince the Federal Reserve (Fed) for an additional rate hike this year. It's worth noting that higher interest rates raise borrowing costs, which can slow the economy and diminish oil demand.

OPEC oil production grew for the second consecutive month in September, led by Nigeria and Iran, despite ongoing market-supporting oil cuts by Saudi Arabia and Russia. That said, the extension of the production cuts could boost the WTI prices higher.

Oil traders will keep an eye on the US JOLTS Job Openings and the weekly Crude Oil Stock from API and EIA for the week ending of September 29 due on Tuesday. Later this week, the US ISM Services PMI and ADP report will be released on Wednesday. The highlight of the week will be the US Nonfarm Payrolls on Friday. These events could significantly impact the USD-denominated WTI price. Oil traders will take cues from the data and find trading opportunities around the WTI prices.

WTI US OIL

Overview
Today last price	86.94
Today Daily Change	-0.86
Today Daily Change %	-0.98
Today daily open	87.8

Trends
Daily SMA20	89.05
Daily SMA50	84.29
Daily SMA100	78.17
Daily SMA200	77.33

Levels
Previous Daily High	90.88
Previous Daily Low	87.64
Previous Weekly High	93.98
Previous Weekly Low	87.74
Previous Monthly High	93.98
Previous Monthly Low	83.09
Daily Fibonacci 38.2%	88.88
Daily Fibonacci 61.8%	89.64
Daily Pivot Point S1	86.66
Daily Pivot Point S2	85.53
Daily Pivot Point S3	83.42
Daily Pivot Point R1	89.91
Daily Pivot Point R2	92.02
Daily Pivot Point R3	93.16

Author

Lallalit Srijandorn

FXStreet

Lallalit Srijandorn is a Parisian at heart. She has lived in France since 2019 and now becomes a digital entrepreneur based in Paris and Bangkok.

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