WTI edges toward $40 again after larger than expected API draw


  • WTI has been on a rollercoaster on Tuesday and trades just under flat.
  • Crude stocks fell by 8.156mln barrels according to the American Petroleum Association. 

It's not been the best day despite some bullish fundamental news for WTI. Just recently the American Petroleum Association reported a draw of 8.256mln barrels in the latest weekly reading. Elsewhere inventories at Cushing Oaklahoma rose 0.164 mln., gasoline stocks fell 2.459mln and distillate stocks rose 2.638mln. Tomorrow the market will get the latest weekly readings from the US Energy Information Administration and this could confirm the drawdown in inventory levels.

In fundamental news, Saudi Arabia and the rest of the OPEC nations seem to have over complied with the output cuts agreed by the OPEC+ group. The output from the cartel hit its lowest point in two decades as the 13 nations pumped 22.62 million barrels per day on average in June.

Spot WTI 1-hour chart

The hourly chart below shows the price heading back up to the psychological USD 40 per barrel mark. It looked like the price was about to break lower earlier in the session but the news has helped it recover somewhat. If the level is conclusively broken then the high on the chart of USD 41.64 per barrel could be tested. 

WTI Technical Analysis

Additional levels

WTI

Overview
Today last price 39.66
Today Daily Change 0.00
Today Daily Change % 0.00
Today daily open 39.66
 
Trends
Daily SMA20 38.38
Daily SMA50 31.04
Daily SMA100 33.81
Daily SMA200 45.34
 
Levels
Previous Daily High 39.92
Previous Daily Low 37.6
Previous Weekly High 41.65
Previous Weekly Low 37.18
Previous Monthly High 35.92
Previous Monthly Low 19.61
Daily Fibonacci 38.2% 39.03
Daily Fibonacci 61.8% 38.49
Daily Pivot Point S1 38.2
Daily Pivot Point S2 36.73
Daily Pivot Point S3 35.87
Daily Pivot Point R1 40.53
Daily Pivot Point R2 41.39
Daily Pivot Point R3 42.86

 

 

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WTI once again breaks $40 per barrel after trading lower in early EU trade

There has been quite the bounce in WTI since the EU session after some strong selling pressure during Thursday and overnight. Once again on Friday's session, the price has taken the USD 40 per barrel handle. 

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