WTI recovers its losses above $74.00, US NFP data eyed

WTI prices recover some lost ground near $74.30 on Friday.
The modest recovery in WTI prices is backed by expectations for Fed rate cuts and Chinese stimulus measures.
The US Nonfarm Payrolls report will be in the spotlight on Friday.

Lallalit Srijandorn FXStreet

Western Texas Intermediate (WTI), the US crude oil benchmark, is trading around $74.30 on Friday. WTI prices snap the two-day losing streak amid the sign of potential interest rate cuts from the US Federal Reserve (Fed).

The modest recovery in WTI prices is supported by the market’s expectations for rate cuts this year after Fed Chair Jerome Powell indicated a peak of the rate hiking cycle during the press conference. It’s worth noting that lower interest rates typically stimulate economic growth which buoys oil demand.

China has revealed measures to encourage development in its faltering property sector. Chinese authorities' emergency reaction and $1 trillion (US$141 billion) yuan liquidity injection helped boost market confidence. The positive developments surrounding China’s economy might lift WTI prices, as China is the world's second-largest oil consumer.

On Thursday, the Organization of the Petroleum Exporting Countries (OPEC) committee said that the group’s members will discuss in March whether or not to extend voluntary oil production cuts in place for the first quarter. The committee said there would be no changes to OPEC’s decision to slash 2.2 million barrels per day from the market this quarter.

Oil traders will closely watch the US Nonfarm Payrolls on Friday. Additionally, the Unemployment Rate, Average Hourly Earnings, Factory Orders, and the final reading of the Michigan Consumer Sentiment will also be released later in the day. These events could significantly impact the USD-denominated WTI price. Oil traders will take cues from the data and find trading opportunities around WTI prices.

WTI US OIL

Overview
Today last price	74.37
Today Daily Change	0.55
Today Daily Change %	0.75
Today daily open	73.82

Trends
Daily SMA20	74.13
Daily SMA50	73.42
Daily SMA100	78.52
Daily SMA200	77.25

Levels
Previous Daily High	76.84
Previous Daily Low	73.7
Previous Weekly High	78.2
Previous Weekly Low	72.55
Previous Monthly High	79.19
Previous Monthly Low	69.41
Daily Fibonacci 38.2%	74.9
Daily Fibonacci 61.8%	75.64
Daily Pivot Point S1	72.73
Daily Pivot Point S2	71.64
Daily Pivot Point S3	69.59
Daily Pivot Point R1	75.87
Daily Pivot Point R2	77.92
Daily Pivot Point R3	79.01

Author

Lallalit Srijandorn

FXStreet

Lallalit Srijandorn is a Parisian at heart. She has lived in France since 2019 and now becomes a digital entrepreneur based in Paris and Bangkok.

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