WTI prints a multi-week high above $79.00

US crude oil benchmark advanced more than 2%, sponsored by China’s data.
The US Dollar remains offered across the board after the US ISM Services PMI.

Christian Borjon Valencia FXStreet

Western Texas Intermediate (WTI) resumed its uptrend after a report by the Wall Street Journal (WSJ) spurred a fall of 3% on speculations that one of the largest oil producers worldwide threatened to leave the Organization of the Petroleum Exporting Countries (OPEC). However, those rumors were dismissed, according to Reuters. At the time of writing, WTI is trading at $79.06, up 2.50%.

During the Wall Street opening, rumors that the United Arabe Emirates (UAE) discussed leaving OPEC as the country has been seeking authorization to increase its crude output. Consequently, WTI fell 3% towards three-day lows before recovering some ground.

Oil prices have been bolstered throughout the week by a shortage of crude oil, on speculations that China’s reopening would increase demand for crude. Additionally, business activity in China gathered momentum with Caixin’s Manufacturing and Services PMI’s re-entering expansionary territory.

WTI prices shrugged off an increase in US stockpiles for the tenth straight week, as record exports of US crude made for a smaller increase than in recent weeks.

Meanwhile, US data revealed in the week showed that business activity in the manufacturing and services segment improved to expansionary territory. Although it’s positive news for growth, Federal Reserve officials would continue to tighten monetary conditions to curb inflation to its 2% target.

In the meantime, the US Dollar Index, a gauge of the buck’s value against a basket of peers, is retreating 0.16%, down at 104.752, a tailwind for the US dollar-denominated oil price.

WTI Technical levels

WTI US OIL

Overview
Today last price	79.35
Today Daily Change	1.31
Today Daily Change %	1.68
Today daily open	78.04

Trends
Daily SMA20	77.14
Daily SMA50	78.02
Daily SMA100	79.82
Daily SMA200	87.93

Levels
Previous Daily High	78.65
Previous Daily Low	77.3
Previous Weekly High	77.75
Previous Weekly Low	73.86
Previous Monthly High	80.75
Previous Monthly Low	72.5
Daily Fibonacci 38.2%	78.14
Daily Fibonacci 61.8%	77.82
Daily Pivot Point S1	77.34
Daily Pivot Point S2	76.65
Daily Pivot Point S3	75.99
Daily Pivot Point R1	78.7
Daily Pivot Point R2	79.35
Daily Pivot Point R3	80.05

Author

Christian Borjon Valencia

FXStreet

Markets analyst, news editor, and trading instructor with over 14 years of experience across FX, commodities, US equity indices, and global macro markets.

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