- WTI kickstarts the fresh trading week on a lower note.
- Coronavirus jitters and demand-supply worries weigh on WTI.
- Higher US dollar valuations continue to exert pressure at the higher level.
Crude oil prices extend the previous week’s submissive moves on Tuesday. The prices opened higher but failed to preserve the momentum. At the time of writing, WTI is trading at $71.51, down 0.40% for the day.
The appreciative move in the US Dollar Index (DXY), which indicates the performance of the greenback against six major rivals, keeps the gain limited for the black gold for the time being. The US dollar was last seen trading at 93.22, up 0.33% for the day.
Crude oil prices are being pressurized amid the uncertainty regarding US and China trade negotiations and relations.
Meanwhile, as per Iraq’s oil minister, OPEC and its allies will try to keep oil prices at $70 per barrel in the Q1 of 2022. Furthermore, the group is expected to stick to its current production agreement in its October meeting but on the condition of price stability. Additionally, the tropical storm Nicholas did not hurt Texas refineries, which allowed companies to fix the infrastructure as they recover from Hurricane Ida.
In the previous week, WTI touched a six-week high near $73.20 on a drop in US crude stockpiles, supply-chain disruptions and the prospects of higher demand on better-than-expected economic data in US and China.
As for now, the US dollar dynamics continue to influence WTI prices.
WTI additional levels
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