WTI recovers modestly from weekly lows, stays below $72


  • Crude oil prices suffered heavy losses on Wednesday and Thursday.
  • WTI remains on track to close second straight week in the negative territory.
  • Focus shifts to Baker Hughes' Oil Rig Count data.

Crude oil prices fell sharply in the second half of the week and the barrel of West Texas Intermediate (WTI) touched its lowest level in a week at $71.12 on Friday. After losing nearly 5% in a two-day span, WTI is staging a modest recovery and was last seen gaining 0.45% on the day at 0.7175.

Supply dynamics weigh on oil prices

Earlier in the week, the United Arab Emirates (UAE) and Saudi Arabia reportedly reached a compromise on production levels, opening the door for OPEC+ producers to reach an agreement on output strategy. However, investors are worried that other producers will also look for privileges on production and delay a deal.

Meanwhile, the sharp increase witnessed in coronavirus delta variant infections seems to have revived worries over an unsteady recovery in the global energy demand. In its latest monthly report, OPEC left the 2021 world oil demand growth forecast unchanged at 5.95 million barrels per day. On a positive note, the organization noted that the world oil demand is forecast to reach comparable pre-pandemic levels in 2022. Nevertheless, this report failed to help oil prices regain traction.

Later in the day, Baker Hughes' weekly US Oil Rig Count data will be looked upon for fresh impetus.

Technical levels to watch for

WTI

Overview
Today last price 71.6
Today Daily Change 0.41
Today Daily Change % 0.58
Today daily open 71.19
 
Trends
Daily SMA20 73.22
Daily SMA50 69.65
Daily SMA100 65.95
Daily SMA200 56.89
 
Levels
Previous Daily High 72.49
Previous Daily Low 71.02
Previous Weekly High 76.4
Previous Weekly Low 70.28
Previous Monthly High 74.17
Previous Monthly Low 66.78
Daily Fibonacci 38.2% 71.58
Daily Fibonacci 61.8% 71.93
Daily Pivot Point S1 70.64
Daily Pivot Point S2 70.1
Daily Pivot Point S3 69.18
Daily Pivot Point R1 72.11
Daily Pivot Point R2 73.03
Daily Pivot Point R3 73.57

 

 

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