WTI off three-week lows, not out of the woods yet

  • WTI bears retain control below $39 mark amid a risk-off mood.
  • Spike in coronavirus cases globally stokes oil demand concerns.
  • The dollar’s strength will continue to weigh on the US oil.  

WTI (futures on NYMEX) has staged a sharp reversal from three-week lows of $38.42, as the bulls fight hard to regain control above the $39 mark.

Despite the pullback, the sentiment around the black gold remains undermined by the resurgent demand concerns for oil and its products, as the key euro area economies enforce fresh lockdowns and stricter restrictions to limit the second wave of the coronavirus contagion. Meanwhile, the US saw the biggest single-day surge in the case on Sunday.

Adding to the pain in the US oil, investors fretted over the prospects of an increase in supply, especially after the Libyan state giant, National Oil Corp, ended its force majeure on exports from two key ports on Friday and said production would reach 1 million barrels per day (bpd) in four week, as cited by Reuters.

Moreover, broad-based US dollar strength, courtesy of the downbeat market mood and the US fiscal stalemate further fuelled the drop in the WTI barrel. A stronger greenback makes the USD-denominated oil more expensive for foreign buyers.

Attentions now remains on the sentiment on Wall Street and fresh virus data from both sides of the Atlantic for fresh trading impetus on the higher-yielding oil.

WTI technical levels

“Oil prices could suffer deeper losses this week. The bearish case would strengthen if prices find acceptance under the immediate support at $39.04 (Oct. 12 low). On the higher side, the horizontal resistance at $41.72 is the level to beat for the bulls,” FXStreet’s Analyst, Omkar Godbole, explained.

WTI additional levels


Today last price 38.83
Today Daily Change -0.83
Today Daily Change % -2.08
Today daily open 39.84
Daily SMA20 40.21
Daily SMA50 40.62
Daily SMA100 40.47
Daily SMA200 38.39
Previous Daily High 40.99
Previous Daily Low 39.65
Previous Weekly High 41.93
Previous Weekly Low 39.65
Previous Monthly High 43.56
Previous Monthly Low 36.43
Daily Fibonacci 38.2% 40.16
Daily Fibonacci 61.8% 40.48
Daily Pivot Point S1 39.33
Daily Pivot Point S2 38.82
Daily Pivot Point S3 38
Daily Pivot Point R1 40.67
Daily Pivot Point R2 41.5
Daily Pivot Point R3 42.01



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. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.

Feed news

Latest Forex News

Latest Forex News

Editors’ Picks

GBP/USD hits new 2020 high near 1.35 on Brexit hopes

GBP/USD is rising toward 1.35, the highest since December 2020, shrugging off Brexit concerns. France may reportedly veto a deal if it sees too many compromises from the EU. The final US Services PMI met estimates.


EUR/USD holds onto 32-month highs after US data

EUR/USD is trading above 1.2150, the highest since April 2018. Optimism about a coronavirus vaccine and US fiscal stimulus boost markets and weigh on the safe-haven dollar. ISM Services PMI came out at 55.9, within estimates.


XAU/USD erases gains despite dollar’s weakness

Gold pulled back from weekly highs and dropped to $1823/oz, reaching a fresh daily low. It then rebounded, and as of writing, it trades at $1830, around the same level it closed on Wednesday.

Gold news

Crypto market relentlessly fighting for new yearly highs

Bitcoin is leading the recovery in the cryptocurrency market after reclaiming the position above $19,000. Ethereum has managed to bring down the critical hurdle at $600 while Ripple is holding slightly above $0.62.

Read more

Extra week of Black Friday!

Learn to trade with the best! Don't miss the most experienced traders and speakers in FXStreet Premium webinars. Also if you are a Premium member you can get real-time FXS Signals and receive daily market analysis with the best forex insights!

More info