WTI: On a steady recovery towards $75 mark ahead of API data

WTI attempting a recovery after a sharp correction from over six-year highs.
Concerns over tighter supplies amid OPEC+ fallout underpin the US oil.
US API weekly crude stockpiles awaited amid risk-on market mood.

Dhwani Mehta FXStreet

WTI (futures on Nymex) is staging an impressive recovery from four-day lows of $72.94, as the bulls look to recapture the $75 level amid an upbeat market mood.

At the time of writing, the US oil rises 1.70% to $74.59, reversing the sharp correction seen on Tuesday from the highest levels since November 2014 at $76.98.

The black gold surged to multi-year highs on concerns over tighter oil supplies unable to match a potential growth in demand, especially after the OPEC and its allies (OPEC+) abandoned the meeting after a failure to reach a deal on the output policy for the third time.

However, the rally to fresh 2021 highs failed to hold up, as sellers returned on profit-taking and resurfacing worries that higher oil price could ramp up inflation, which may temper the global economic recovery.

So far this Wednesday, WTI price draws support from an improvement in the risk sentiment, as the European equities trade in the green alongside the US futures. Also, worries over tighter oil markets continue to provide underlying support to the US oil, as the focus now shifts towards the weekly crude stockpiles report due to be published by the American Petroleum Institute (API) later today.

Subdued trading seen in the US dollar across the board is also boding well for the USD-denominated WTI. Investors await the FOMC minutes for fresh dollar trades, which could eventually have a significant bearing on oil.

WTI technical levels to consider

WTI

Overview
Today last price	74.58
Today Daily Change	0.89
Today Daily Change %	1.21
Today daily open	73.31

Trends
Daily SMA20	72.47
Daily SMA50	68.49
Daily SMA100	65.12
Daily SMA200	55.71

Levels
Previous Daily High	76.4
Previous Daily Low	72.44
Previous Weekly High	75.7
Previous Weekly Low	71.69
Previous Monthly High	74.17
Previous Monthly Low	66.78
Daily Fibonacci 38.2%	73.96
Daily Fibonacci 61.8%	74.89
Daily Pivot Point S1	71.7
Daily Pivot Point S2	70.09
Daily Pivot Point S3	67.74
Daily Pivot Point R1	75.66
Daily Pivot Point R2	78.01
Daily Pivot Point R3	79.62

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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