WTI drops below $90 mark on potential truce between Russia and Ukraine

WTI slips near $90 on Biden-Putin meet as investors hope for a truce between Russia and Ukraine.
The DXY scales below 96.00 as the risk-on impulse kicks in.
The API weekly crude stockpiles remain the next trigger to keep on the radar.

Sagar Dua FXStreet

West Texas Intermediate (WTI), futures on NYMEX, retreats from Monday’s high of $91.60 in the Asian session after the US White House confirms that US President Joe Biden has accepted to meet Russian leader Vladimir Putin on security and strategic stability in Europe. The confirmation of the meeting has come along with a condition stating that Russia doesn’t invade Ukraine.

Should this occur, the crude oil supply will not worsen further as Russia will not find any sanctions from the Western leaders.

Earlier, the market participants claimed that restrictions on the exports from Russia may reduce the supply of oil and increase the price eventually. The economy is already encountering a tight oil supply environment and any further slippage in total oil stocks could halt the operating activities.

The announcement has eased the volatility in the market principally and risk-on impulse is getting more traction. The US dollar index (DXY) tumbles below 96.00, 0.3% lower than Friday’s closing price.

Apart from that, Saudi Energy Minister Prince Abdulaziz bin Salman said at an energy conference in Riyadh Sunday, OPEC and its allies (OPEC+) should come across to keep oil market stability in the long term. The comments have been supportive of the oil supply but the Russia-Ukraine tussle still remains the major driver to guide the crude oil prices.

As the US markets are closed on Monday, on account of President’s Day, the release of American Petroleum Institute (API) weekly oil stockpiles shifts on Wednesday, which may help investors for further guidance over the anticipation of the oil prices in coming trading sessions.

WTI US OIL

Overview
Today last price	89.56
Today Daily Change	-0.68
Today Daily Change %	-0.75
Today daily open	90.24

Trends
Daily SMA20	88.62
Daily SMA50	81.67
Daily SMA100	79.72
Daily SMA200	74.85

Levels
Previous Daily High	90.88
Previous Daily Low	87.29
Previous Weekly High	94.02
Previous Weekly Low	87.29
Previous Monthly High	88.22
Previous Monthly Low	74.12
Daily Fibonacci 38.2%	89.51
Daily Fibonacci 61.8%	88.66
Daily Pivot Point S1	88.06
Daily Pivot Point S2	85.89
Daily Pivot Point S3	84.48
Daily Pivot Point R1	91.65
Daily Pivot Point R2	93.06
Daily Pivot Point R3	95.23

Author

Sagar Dua

FXStreet

Sagar Dua is associated with the financial markets from his college days. Along with pursuing post-graduation in Commerce in 2014, he started his markets training with chart analysis.

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