WTI reverses part of the weekly decline and advances past $78.00
- Prices of the WTI bounces off lows in the sub-$77.00 region.
- Crude oil snapped four consecutive weeks with gains.
- Recession fears continue to weigh on traders’ sentiment.
Prices of the barrel of the WTI manage to regain some buying interest and advance past the $78.00 mark on Friday.
WTI stronger despite USD-buying, recession risks remain
WTI prices advance for the first time this week following a sharp rejection from post-OPEC+ 2023 peaks north of the $83.00 mark (April 12). Furthermore, crude oil remains en route to close the first week with loses after four consecutive gains.
Alternating trends in the dollar seems to have lent some support to the commodity as well and despite traders remain concerned over a potential economic slowdown and its negative impact on the demand for crude oil.
The above appears equally propped up by unabated expectations of extra tightening by the Federal Reserve at the May gathering, while the positive GDP outlook in China is seen limiting the potential downside of the commodity.
Later in the session, driller Baker Hughes will publish its weekly report on US oil rig count in the week to April 21.
WTI significant levels
At the moment the barrel of WTI is up 1.18% at $78.04 and faces the next hurdle at $82.50 (200-day SMA) followed by $83.49 (2023 high April 12) and finally $92.90 (monthly high November 7 2022). On the other hand, a breach of $76.78 (wekly low April 21) would open the door to $76.30 (55-day SMA) and then $70.00 (round level).
Author
Pablo Piovano
FXStreet
Born and bred in Argentina, Pablo has been carrying on with his passion for FX markets and trading since his first college years.
