• WTI is supported on a number of fundamentals and bulls stay in control.
  • $75bbls is a psychological target area with price holding near the $74.22 highs. 

Oil prices have been elevated into the end of the week and WTI ended up some 0.1% at $73.23 in the New York session.

Spot travelled from a low of $72.35 to a high of $73.58, close to its highest levels in almost three years where the price consolidates in Asia so far, at $73.25.

A drawdown in US inventories and accelerating German economic activity has underpinned the black gold for a fifth consecutive day of higher closes.

 In futures markets, both Brent and WTI contracts benchmarks hit their highest since October 2018.  

Meanwhile, in data overnight, Germany showed the largest upward leap in retail conditions since German reunification more than three decades ago, not far below the 2017 record high, stoking expectations European fuel demand will recover. 

Germany’s June IFO Index reaffirmed the message from the PMI data that the economy is growing strongly at present. Overall, the business climate sub-index rose to 101.8 vs 99.2, the current assessment rose to 99.6 vs 95.7 and expectations firmed to 104 vs 102.9.

Meanwhile, data in the EIA US crude inventories dropped to their lowest since March 2020 while US gasoline stocks also posted a surprise draw.

There are also doubts about the future of the 2015 Iran nuclear deal that could end US sanctions on Iranian crude exports. 

Looking forward to next week, OPEC+ is faced with some pressing issues as it reviews its production agreement in a meeting that traders will be highly attentive to. 

''The market is calling out for more crude oil, while others are concerned about the inflationary impact of higher prices. India expressed 'deep concern' over spiralling energy prices, with Oil Minister, Dharmendra Pradhan, calling on OPEC Secretary General, Mohammad Barkindo, to revive halted production,'' analysts at ANZ Bank explained. 

''Saudi Arabia’s Energy Minister, Prince Abdulaziz bin Salman, said earlier this week that he maintains a cautious approach but doesn’t rule out action.''

WTI technical analysis

$75 remains in focus.

The weekly charts shows that the price is on the verge of breaking into supply territory. 

A correction back to test prior highs could well be the first port of call, however, where it meets a 50% Fibo retracement. 

The daily chart shows that the price is steadily approaching the target still with the price closing above the prior day’s close once again. 

The focus is on the upside for the forthcoming sessions following a significant retracement to the prior resistance structure that has proved to be a solid support structure in 72.50.

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Feed news

Latest Forex News

Latest Forex News

Editors’ Picks

EUR/USD hovers around 1.1900, retains weekly gains

The EUR/USD pair trades around the 1.19 mark after the Eurozone Q2 Prelim GDP beat estimates with 2% while US PCE inflation rose by less than anticipated in June, printing at 3.5% YoY. Risk-on mood persists.


GBP/USD retreats after flirting with 1.4000

GBP/USD retreated from near the 1.4000 level, but the greenback remains away from investors' radar. Optimism over the Brexit issue and the declining trend in new COVID-19 cases in the UK offers support to the pound.


XAU/USD slides to $1,820 area, downside seems limited

Gold traded with a mild negative bias around the $1,825 region, or daily lows, during the early North American session, albeit lacked any follow-through selling.

Gold News

Shiba gets listed on eToro as demand for SHIB skyrockets

Leading investment platform eToro has been adding cryptocurrency assets on popular demand from users. The Dogecoin killer recently amassed 600,000 holders despite range-bound price action. 

Read more

NIO shares rise again as Wall Street shrugs off recent China woes

NYSE:NIO added 1.86% as EV and China stocks bounced back again. Nio rides higher as industry leader Tesla gets some major upgrades. Nio rival XPeng releases a refreshed look for its compact SUV.

Read more