WTI looks to settle with strong gains near $40

WTI erased a large portion of Tuesday's losses.
Weekly EIA data showed crude oil stocks in the US declined by 2 million barrels.
OPEC output rose by 160,000 bpd in September.

Eren Sengezer FXStreet

After suffering heavy losses on Tuesday, crude oil staged a decisive rebound and the barrel of West Texas Intermediate (WTI) touched a daily high of $40 before going into a consolidation phase. As of writing, the WTI was up nearly 2% on a daily basis at $39.85.

EIA's stock report helps WTI push higher

The risk-positive market environment, as reflected by strong gains witnessed in Wall Street's main indexes, seems to be helping crude oil find demand on Wednesday. At the moment, the S&P 500 Index is up 1.45% on a daily basis at 3,383.

Meanwhile, the weekly data published by the US Energy Information Administration (EIA) provided an additional boost to the WTI. The EIA announced that crude oil inventories declined by 2 million barrels in the week ending September 25th, compared to analysts' estimate for an increase of 1.56 million barrels.

Earlier in the day, Reuters reported that its latest survey showed that crude oil output of OPEC in September rose by 160,000 barrels per day (bpd) tp 24.38 million bpd. However, Reuters further noted that OPEC+ has reportedly reached a 101% compliance of pledged oil output reductions and helped crude oil preserve its bullish momentum.

Technical levels to watch for

WTI

Overview
Today last price	39.91
Today Daily Change	0.70
Today Daily Change %	1.79
Today daily open	39.21

Trends
Daily SMA20	39.54
Daily SMA50	41.14
Daily SMA100	39.28
Daily SMA200	40.23

Levels
Previous Daily High	40.8
Previous Daily Low	38.53
Previous Weekly High	41.51
Previous Weekly Low	38.92
Previous Monthly High	43.86
Previous Monthly Low	39.75
Daily Fibonacci 38.2%	39.4
Daily Fibonacci 61.8%	39.93
Daily Pivot Point S1	38.23
Daily Pivot Point S2	37.25
Daily Pivot Point S3	35.96
Daily Pivot Point R1	40.49
Daily Pivot Point R2	41.78
Daily Pivot Point R3	42.76

Author

Eren Sengezer

FXStreet

As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.

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