WTI drops back towards $105 despite Libya outage, Shanghai reopening

WTI price is on a corrective decline from three-week highs.
WTI bulls ignore the Libyan fuel supply outage and Shanghai reopening news.
OPEC+ produces 1.45 mil bpd below target last month, API data eyed.

Dhwani Mehta FXStreet

WTI (NYMEX futures) is dropping over 1% so far this Tuesday, snapping a four-day uptrend, as bulls remain weighed down by the recent strength in the US dollar across its main peers.

Despite the latest pullback, the greenback continues to outperform its rivals amid increased odds of a double-dose Fed rate hike in May as well as in June. The US Treasury yields resume their bullish momentum, reviving the bids for the dollar while weighing on the USD-denominated oil.

The black gold fails to draw support from supply disruptions woes, emanating from Libya. Libya's National Oil Corp closed its largest oil field as forces in the east expanded their blockade of the sector over a political standoff.

Adding to it, Reuters reported that OPEC and its allies (OPEC+) produced 1.45 mil bpd below target last month as Russian output was hit by sanctions.

Meanwhile, WTI bulls also ignored reports that Shanghai is preparing to ease covid lockdown restrictions, as factories reopen. Note that China is the world’s second-largest oil consumer and is currently battling the worst coronavirus outbreak since Wuhan.

Attention now turns towards the private sector weekly crude stocks change report due to be released by the American Petroleum Institute (API) later on Tuesday for fresh trading opportunities in WTI price.

WTI: Technical levels to consider

WTI US OIL

Overview
Today last price	105.60
Today Daily Change	-1.28
Today Daily Change %	-1.20
Today daily open	106.92

Trends
Daily SMA20	103.66
Daily SMA50	100.33
Daily SMA100	88.87
Daily SMA200	81.42

Levels
Previous Daily High	109.13
Previous Daily Low	105.4
Previous Weekly High	107
Previous Weekly Low	92.65
Previous Monthly High	126.51
Previous Monthly Low	92.37
Daily Fibonacci 38.2%	107.7
Daily Fibonacci 61.8%	106.82
Daily Pivot Point S1	105.17
Daily Pivot Point S2	103.43
Daily Pivot Point S3	101.45
Daily Pivot Point R1	108.9
Daily Pivot Point R2	110.87
Daily Pivot Point R3	112.62

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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