WTI pulls back to $67.00 even as Saudi Arabian news, US stimulus probe October 2018 top


  • WTI eases after week-start gap-up to multi-month high.
  • Saudi Arabia increases oil prices for Asia, Iran-backed Houthi rebels said they targeted Saudi oil ports.
  • US Senate passage $1.9 trillion covid stimulus, House is expected to vote on Tuesday.
  • Risk news will be the key amid a light calendar.

WTI wavers around $67.00, following its run-up to the multi-month high of $67.69, during Monday’s Asian session. The energy benchmark portrayed a week-start gap-up while testing $67.00 as fundamentals concerning Saudi Arabia and the US coronavirus (COVID-19) aid package played their role. Also favoring the oil bulls could be China’s trade figures. Though, a lack of major data/events as well as the Sino-American tussle probes the quote’s immediate upside.

With 50-49 votes, the US Senate managed to approve President Joe Biden’s $1.9 trillion covid relief package, known as American Rescue Plan Act. Although the move backs reflation fears and may help the US dollar to rise further, S&P 500 Futures cheered the passage of the much-awaited stimulus and favored the commodities off-late.

Further, energy buyers also benefited from news suggesting Saudi Arabia’s hike in the official selling price (OSP) for its Arab Light crude to Asia by $1.40 per barrel. On the same line, Wall Street Journal’s (WSJ) news suggesting Iran-backed Houthi military targeted Saudi Arabia’s oil port and facilities also favored the WTI upside.

It’s worth mentioning that China’s 60% jump in Trade Balance (USD terms) during January and February, to $103.25B, offered extra strength to the prices of the black gold.

Meanwhile, China urges the US to not meddle in Taiwan and a lack of major data/events in Asia probe WTI traders off-late.

Looking forward, oil traders should wait for the US traders’ reaction to the latest passage of the covid relief package. Though, the bulls can keep reins amid expectations of further economic recovery, backed by the stimulus and vaccine hopes, as well as challenges to the oil supply, due to the turmoil in Saudi Arabia and OPEC+ production cuts until at least April.

Technical analysis

Unless witnessing a downside break of February top near $63.75, WTI bulls can aim for $70.00 comprising highs marked during late July and October of 2018.

Additional important levels

Overview
Today last price 67.06
Today Daily Change 0.90
Today Daily Change % 1.36%
Today daily open 66.16
 
Trends
Daily SMA20 60.76
Daily SMA50 55.49
Daily SMA100 49.33
Daily SMA200 44.82
 
Levels
Previous Daily High 66.27
Previous Daily Low 63.69
Previous Weekly High 66.27
Previous Weekly Low 59.17
Previous Monthly High 63.72
Previous Monthly Low 51.6
Daily Fibonacci 38.2% 65.29
Daily Fibonacci 61.8% 64.68
Daily Pivot Point S1 64.48
Daily Pivot Point S2 62.79
Daily Pivot Point S3 61.89
Daily Pivot Point R1 67.06
Daily Pivot Point R2 67.96
Daily Pivot Point R3 69.65

 

 

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