WTI: Recovery remains capped below $39 ahead of API data

WTI attempts a recovery but not out of the woods yet.
Saudi Oil Minister’s comments, USD retreats support oil.
Coronavirus data and API crude stockpiles in focus.

Dhwani Mehta FXStreet

WTI (futures on NYMEX) is struggling to extend its recovery from three-week lows of $38.29 in Asia this Tuesday, as sellers continue to lurk around $38.80 levels amid the cautious market mood.

Surging coronavirus cases and the reinforcement of stricter restrictions across Europe spooked investors sentiment while stoking fresh demand concerns for oil and its products on Monday. The US oil lost 3% and hit three-week lows just above the $38 mark.

Further, a rebound in Libya’s oil production raised fears over an increase in global supply, which exacerbated the pain in the black gold.

The Libyan state giant, National Oil Corp, ended its force majeure on exports from two key ports on Friday while noting that it production would reach 1 million barrels per day (bpd) over the next month.

So far this Tuesday, the WTI barrel reverses a part of the recent sell-off, helped by the upbeat comments from the Saudi Arabian Energy Minister Prince Abdulaziz bin Salman and broad-based US dollar retreat. Saudi Oil Minister said that the worst is over for the oil market, at the virtual India Energy Forum by CERAWeek.

Markets now look forward to the global coronavirus statistics and weekly US crude stockpiles data due to be published by the American Petroleum Institute (API) for fresh oil trades.

WTI technical levels

WTI

Overview
Today last price	38.77
Today Daily Change	0.16
Today Daily Change %	0.41
Today daily open	38.69

Trends
Daily SMA20	40.11
Daily SMA50	40.53
Daily SMA100	40.47
Daily SMA200	38.29

Levels
Previous Daily High	39.84
Previous Daily Low	38.38
Previous Weekly High	41.93
Previous Weekly Low	39.65
Previous Monthly High	43.56
Previous Monthly Low	36.43
Daily Fibonacci 38.2%	38.94
Daily Fibonacci 61.8%	39.29
Daily Pivot Point S1	38.1
Daily Pivot Point S2	37.51
Daily Pivot Point S3	36.64
Daily Pivot Point R1	39.56
Daily Pivot Point R2	40.43
Daily Pivot Point R3	41.02

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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