WTI fails another run towards $ 61, focus on US rigs data


  • Firmer amid Gulf of Mexico hurricane risks, persistent USD weakness and Middle East tensions.
  • Focus on geopolitical development ahead of US PPI and rigs count data.

WTI (futures on Nymex) stalled its gradual rise towards the 61 handle, as it awaits fresh catalysts for the next push higher. The bulls appear to gather pace for a sustained break above the 61.00 barrier, in a bid to renew the highest level in seven weeks.

Despite the latest leg down, the sentiment around the black gold continues to remain underpinned by looming supply disruption risks amid a potential hurricane and escalating Middle East tensions.

The US National Hurricane Center (NHC) warned earlier today that a tropical Gulf of Mexico storm Barry could become a hurricane on late Friday. In the face of the hurricane risks, oil companies in the Gulf of Mexico had cut more than 1 million barrels per day (bpd) of output or 53% of the region’s production, Reuters reports.

Adding to the bullish tone, Middle East tensions mount after Iran Iran’s attempted to block a British-owned tanker earlier this week. Meanwhile, the US-Iran rift over the tankers attack also continue to remain oil supportive.

Further, ongoing broad US dollar weakness combined with declining US crude inventories keep the prices steady near multi-week tops. A weaker US dollar makes the USD-denominated oil cheaper for foreign buyers. The greenback remains on the back foot amid increased Fed rate cut expectations following dovish Fed Chair Powell’s testimony.

Looking ahead, markets await the US rigs count data for fresh trading impetus, as they keep an eye on the hurricane threat.

Levels to watch

WTI

Overview
Today last price 60.42
Today Daily Change 0.08
Today Daily Change % 0.13
Today daily open 60.5
 
Trends
Daily SMA20 57.31
Daily SMA50 57.92
Daily SMA100 59.36
Daily SMA200 57.33
Levels
Previous Daily High 60.99
Previous Daily Low 60.2
Previous Weekly High 60.3
Previous Weekly Low 56.1
Previous Monthly High 59.93
Previous Monthly Low 50.72
Daily Fibonacci 38.2% 60.69
Daily Fibonacci 61.8% 60.5
Daily Pivot Point S1 60.14
Daily Pivot Point S2 59.77
Daily Pivot Point S3 59.35
Daily Pivot Point R1 60.93
Daily Pivot Point R2 61.35
Daily Pivot Point R3 61.72

 

 

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility.

Feed news

Latest Forex News

Editors’ Picks

EUR/USD extends gains to fresh seven-week highs

The American dollar is under selling pressure amid a better market mood. EUR/USD above 1.1140 ahead of several Fed’s speakers that can rock markets.

EUR/USD News

GBP/USD trades around 1.29 amid speculation of Brexit vote

GBP/USD is trading around 1.29 as speculation mounts about the fate of the Brexit deal. UK PM Johnson faces a test in parliament after securing an accord with the EU.

GBP/USD News

USD/JPY: struggles near mid-108.00s pivotal point amid weaker USD

US Dollar Index slumped to multi-month lows below 97.50. 10-year US Treasury bond yield adds more than 1% on Friday. Wall Street's main indexes look to start the day little changed.

USD/JPY News

Gold turns flat above $1,490 as USD remains under pressure

After dropping to a daily low of $1,485, the XAU/USD pair staged a modest rebound during the American trading hours and turned flat on the day near $1,492.

Gold News

China’s downward economic path offers no escape from its trade problems

There were no surprises in China’s GDP figures as the government portrays an economy slipping steadily lower giving little promise of improvement or support for the waning global expansion.

Read more

Forex MAJORS

Cryptocurrencies

Signatures