WTI Price Analysis: WTI rises near $83.00 amid supply crunch fears

WTI rose near the $82.90 zone, setting a three-day winning streak.
Supply crunch fears amid the Hurracain Idalia tractions Oil prices.
A stronger USD and the fragile Chinese situation may limit the upside.

Patricio Martín FXStreet

The West Texas Intermediate (WTI) rose on Wednesday and threatened the $83.00 resistance.

What is driving the price upwards is Hurricane Idalia approaching the Gulf of Mexico, where the US concentrates 15% of its Oil production and supply crunch fears are increasing crude prices. In addition, the report of lower-than-expected US crude stockpiles released on Tuesday and the continuing manoeuvres by OPEC+ to extend its voluntary production cuts also contributes to the upside.

Moreover, China reported soft economic data during the Asian session, with the Non-Manufacturing PMI decreasing to 51.00, vs. the 51.1 expected, and the weak Chinese outlook may limit the black gold’s gains. In line with that, the USD is trading strong against most of its rivals, which could also hold back the WTI bulls.

WTI Levels to watch

Analysing the daily chart, it is apparent that the WTI has a neutral to bullish technical stance, with the bulls gradually recovering ground. The Relative Strength Index (RSI) has a positive slope above its midline, while the Moving Average Convergence (MACD) lays out decreasing red bars. Moreover, the pair is above the 20,100,200-day Simple Moving Average (SMA), implying that the bulls retain control on a broader scale.

Support levels: $81.25, $80.00, $78.50.

Resistance levels: $83.00, $83.50, $84.50.

WTI Daily Chart

WTI US OIL

Overview
Today last price	82.76
Today Daily Change	1.28
Today Daily Change %	1.57
Today daily open	81.48

Trends
Daily SMA20	80.91
Daily SMA50	77.14
Daily SMA100	75.1
Daily SMA200	75.97

Levels
Previous Daily High	81.82
Previous Daily Low	80.68
Previous Weekly High	81.68
Previous Weekly Low	77.53
Previous Monthly High	81.78
Previous Monthly Low	69.77
Daily Fibonacci 38.2%	81.38
Daily Fibonacci 61.8%	81.11
Daily Pivot Point S1	80.83
Daily Pivot Point S2	80.19
Daily Pivot Point S3	79.7
Daily Pivot Point R1	81.97
Daily Pivot Point R2	82.46
Daily Pivot Point R3	83.11

Author

Patricio Martín

FXStreet

Patricio is an economist from Argentina passionate about global finance and understanding the daily movements of the markets.

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