WTI rebounds from an earlier drop to $70.00, looks at data

WTI bounces off multi-day lows near $70.00.
Traders remain divided between recession fears and Chinese recovery.
Baker Hughes will publish its oil rig count later in the session.

Pablo Piovano FXStreet

Prices of the barrel of the West Texas Intermediate (WTI) cling to daily gains above the $71.00 mark following an earlier pullback to multi-session lows near the key $70.00 mark on Friday.

WTI looks at China, recession jitters

Crude oil prices now alternate gains with losses above the $71.00 mark and remain on track to close the first week with gains after three consecutive pullbacks.

In the meantime, the debate among traders remains well in place amidst the perception of an incipient US recession and dark clouds over the prospects for a Chinese recovery post-pandemic, while the still unresolved debt ceiling issue and unabated banking jitters also collaborate with the cautious scenario around the commodity for the time being.

A couple of news limiting the daily decline came from the announcement that the US government will start re-filling its SPR and the decrease to multi-month lows in Nigerian oil output during April.

Later in the NA session, Baker Hughes will publish its weekly report on the US drilling activity.

WTI significant levels

At the moment the barrel of WTI is up 0.11% at $71.47 and faces the next resistance at $73.83 (weekly high May 10) seconded by $76.92 (high April 28) and finally $79.14 (weekly high April 24). On the other hand, the breach of $63.97 (monthly low May 3) would open the door to $64.41 (2023 low March 20) and then $61.76 (monthly low August 23 2021).

Author

Pablo Piovano

FXStreet

Born and bred in Argentina, Pablo has been carrying on with his passion for FX markets and trading since his first college years.

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