WTI pares early losses, climbs above $42.50 in early American session

Crude oil prices gained traction after making a technical correction.
Iraq announced that it will make additional output cuts in August.
Weekly Initial Jobless Claims in the US declined by 249K.

Eren Sengezer FXStreet

Crude oil prices closed the fourth straight day in the positive territory on Wednesday and staged a technical correction in the first half of the day on Thursday. After dropping to $41.50 area, however, the barrel of West Texas Intermediate (WTI) gained traction during the American session and was last see gaining 0.9% on the day at $42.55.

Iraq further reduces oil output in August

Earlier in the day, Iraq's oil ministry and state oil marketer announced in a statement that Iraq will lower its oil output by an additional 400,000 barrels per day to compensate for its overproduction, as reported by Reuters. Iraq further reiterated that it's committed to the OPEC+ agreement and provided a boost to crude oil prices.

Meanwhile, the data published by the US Department of Labor showed on Thursday that the weekly Initial Jobless Claims declined by 249,000 to 1,186,000 in the week ending August 31st. With this data keeping hopes alive for a steady recovery in the energy demand outlook, the WTI preserved its bullish momentum.

Technical levels to watch for

WTI

Overview
Today last price	42.71
Today Daily Change	0.36
Today Daily Change %	0.85
Today daily open	42.35

Trends
Daily SMA20	41.04
Daily SMA50	39.52
Daily SMA100	32.48
Daily SMA200	43.44

Levels
Previous Daily High	43.62
Previous Daily Low	41.6
Previous Weekly High	41.99
Previous Weekly Low	39.1
Previous Monthly High	42.52
Previous Monthly Low	38.73
Daily Fibonacci 38.2%	42.85
Daily Fibonacci 61.8%	42.37
Daily Pivot Point S1	41.43
Daily Pivot Point S2	40.51
Daily Pivot Point S3	39.41
Daily Pivot Point R1	43.45
Daily Pivot Point R2	44.54
Daily Pivot Point R3	45.46

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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