WTI resumes the decline towards two-month lows ahead of API data


  • WTI returns to the red as the recovery falters above the $67 mark.
  • US oil eyes support from the risk recovery in European trading.
  • WTI traders await API crude stocks data for fresh cues.

WTI (futures on Nymex) is paring back gains below $67, having stalled its tepid recovery from two-month lows of $65.61.

At the time of writing, the US oil trades modestly flat at $66.30, reversing a brief dip to daily lows of $66.14 after a fresh sell-wave engulfed the price from near the $67.30 region.

There appears to be no significant catalyst behind the latest leg down in the black gold. However, the downside remains cushioned (for now) amid a recovery in the risk sentiment. The European equities rebound after Monday’s rout while the S&P 500 futures also jump over 0.50% so far this session.

On Monday, WTI tumbled as much as 7.5% before recovering some ground to finish the day at $66.42, still losing 5% on the day. The deal reached amongst OPEC and its allies (OPEC+) to ramp up oil supply by 400K barrels per day (bpd) from August emerged as the key trigger for the sell-off.

Although the losses piled on amid a global rout, sparked by concerns over global economic recovery, in the wake of the rapid spread of the Delta coronavirus strain worldwide.

With the risk sentiment still leading the way for WTI traders, the weekly US crude stockpiles due to be published by the American Petroleum Institute (API) remain on their radars for fresh direction on prices.

WTI technical levels to consider

WTI

Overview
Today last price 66.36
Today Daily Change 0.06
Today Daily Change % 0.09
Today daily open 66.48
 
Trends
Daily SMA20 72.9
Daily SMA50 69.8
Daily SMA100 66.08
Daily SMA200 57.17
 
Levels
Previous Daily High 71.33
Previous Daily Low 65.53
Previous Weekly High 74.95
Previous Weekly Low 70.14
Previous Monthly High 74.17
Previous Monthly Low 66.78
Daily Fibonacci 38.2% 67.75
Daily Fibonacci 61.8% 69.11
Daily Pivot Point S1 64.23
Daily Pivot Point S2 61.98
Daily Pivot Point S3 58.43
Daily Pivot Point R1 70.03
Daily Pivot Point R2 73.58
Daily Pivot Point R3 75.83

 

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