WTI holds steady around $80.60 area, just below the YTD peak touched on Thursday

WTI pauses after the previous day’s strong move up to a fresh YTD peak.
Hawkish Fed expectations and China’s economic woes act as a headwind.
Improved demand outlook should limit any meaningful corrective decline.

Haresh Menghani FXStreet

West Texas Intermediate (WTI) US Crude Oil prices oscillate in a narrow range, just above mid-$80.00s during the Asian session on Friday and remain well within the striking distance of the highest level since November 6 touched the previous day.

The hotter-than-expected US Producer Price Index (PPI) suggested that the Federal Reserve (Fed) might stick to its higher-for-longer interest rates narrative to bring down inflation. This is expected to hamper economic activity and dent fuel demand, which, along with concerns about a slowdown in China, acts as a headwind for Crude Oil prices. The downside, however, remains cushioned in the wake of a sharp decline in US inventories, drone strikes on Russian refineries and a rise in energy demand forecasts.

The Energy Information Administration (EIA) reported on Wednesday that US crude stockpiles unexpectedly shrank by about 1.5 million barrels in the week to March 8. Meanwhile, Ukraine's one of the most serious drone attacks against Russia's energy sector in recent months caused a fire at Rosneft's biggest refinery on Wednesday. Moreover, the International Energy Agency raised its view on 2024 oil demand growth for a fourth time since November amid supply disruptions caused by Houthi attacks in the Red Sea.

This comes after OPEC+ members decided to extend the production cuts of 2.2 million barrels per day through the second quarter and support prospects for a further appreciating move for Crude Oil prices. Nevertheless, the black liquid remains on track to register strong week gains as the market focus now shifts to the highly-anticipated two-day FOMC monetary policy meeting starting next Tuesday.

WTI US OIL

Overview
Today last price	80.6
Today Daily Change	0.08
Today Daily Change %	0.10
Today daily open	80.52

Trends
Daily SMA20	78.16
Daily SMA50	76
Daily SMA100	75.58
Daily SMA200	78.07

Levels
Previous Daily High	81.05
Previous Daily Low	79.18
Previous Weekly High	80.01
Previous Weekly Low	77.18
Previous Monthly High	79.27
Previous Monthly Low	71.46
Daily Fibonacci 38.2%	80.34
Daily Fibonacci 61.8%	79.9
Daily Pivot Point S1	79.45
Daily Pivot Point S2	78.38
Daily Pivot Point S3	77.58
Daily Pivot Point R1	81.33
Daily Pivot Point R2	82.13
Daily Pivot Point R3	83.2

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

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