WTI firm, regains the $71.00 handle and above

  • WTI is moving higher and breaks above the $71.00 mark.
  • Traders appear to have left behind fears around the riskier assets.
  • Iran sanctions could be back to the fore, limiting the downside.

Prices of the barrel of the West Texas Intermediate are trading on a positive fashion at the end of the week, managing to retake the $71.00 mark and above for the time being.

WTI supported near $72.00

Prices of the WTI are recovering the smile after two consecutive daily pullbacks, finding decent support in the $70.60 area on Thursday and pushing higher beyond the $71.00 mark today.

The renewed sour sentiment around the risk-associated complex in past sessions, plus omnipresent trade effervescence between China and the US and the rout in US stocks have been weighing on crude oil as of late.

However, news of the Trump-Xi meeting next month appears to have removed tailwinds from the recent decline, while US sanctions against Iran oil exports could return to the fore and help to cap occasional dips.

Looking ahead, Baker Hughes will publish its weekly report on the US drilling activity later in the NA session.

WTI significant levels

At the moment the barrel of WTI is up 0.77% at $71.63 facing the next hurdle at $72.67 (21-day SMA) seconded by $74.20 (10-day SMA) and finally $75.41 (high Oct.9). On the downside, a breach of $70.64 (low Oct.11) would aim for $70.21 (55-day SMA) and then $69.68 (100-day SMA).

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