WTI eyes $115.00 on falling US SPR, EU focuses on a Russian oil embargo

The oil prices have recovered sharply on rising supply worries.
Falling oil inventories in US SPR have underpinned the oil bulls.
Oil output from Moscow has plunged 9% post its invasion of Ukraine.

Sagar Dua FXStreet

West Texas Intermediate (WTI) futures on NYMEX, has rebounded sharply after testing its crucial support of $110.00 in the New York session. After a mild correction, the oil prices are set to advance further towards the round-level resistance of $115.00.

The strength in the oil bulls is backed by lower oil inventories in the US Strategic Petroleum Reserve (SPR). The US SPR has fallen to 538 million barrels, the lowest since 1987, as per Reuters. Earlier, US President Joe Biden announced the highest release of oil from its US SPR to diminish the supply worries. Meanwhile, oil supply from Moscow has plunged by 9% as per Hellenic Shipping news. Russian oil output has been reported at 9.16 million barrels per day (bpd) in April, a deviation by 860,000 million bpd raises concerns over the supply issues in an already tight oil market.

On Wednesday, the European Union (EU) unveiled a 210 billion euro plan to end its dependence on oil from Russia by 2027 as per Reuters. This has elevated the oil supply worries, which will keep the bullish momentum intact.

On the demand side, China has imposed more restrictive measures to curb the spread of the Covid-19. The Chinese administration is advocating a Work From Home (WFH) policy to contain the spread of the virus and remove curbs on the movement of men, materials, and machines.

WTI US OIL

Overview
Today last price	110.85
Today Daily Change	0.15
Today Daily Change %	0.14
Today daily open	110.7

Trends
Daily SMA20	104.37
Daily SMA50	103.95
Daily SMA100	95.97
Daily SMA200	84.95

Levels
Previous Daily High	113.18
Previous Daily Low	108.96
Previous Weekly High	109.55
Previous Weekly Low	97.21
Previous Monthly High	109.13
Previous Monthly Low	92.65
Daily Fibonacci 38.2%	110.57
Daily Fibonacci 61.8%	111.57
Daily Pivot Point S1	108.72
Daily Pivot Point S2	106.73
Daily Pivot Point S3	104.5
Daily Pivot Point R1	112.93
Daily Pivot Point R2	115.16
Daily Pivot Point R3	117.15

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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