WTI sees minor recovery for Tuesday as supply constraints remain a concern, Crude Oil trying to reclaim $88.50
- WTI looking to reclaim $88.50 as energies see mild recovery.
- Crude oil got crushed last week after broad-market risk-off flows sent investors piling into the US Dollar.
- US Dollar Index's ten-month high sent crude barrels into a three-week low.
West Texas Intermediary (WTI) Crude Oil barrel prices staged a mild rally to recover the $88.50 level after finishing a week-long plunge into three-week lows as broad-market risk aversion sent market participants fleeing into safe havens.
US Crude Oil prices stretched to ten-month peaks as global oil production is set to undersupply global demand.
Earlier reports of a resumption of an Iraqi oil pipeline got cold water splashed on them after Turkey stated that talks about resuming construction are still underway. A critical Iraqi oil-exporting pipeline running through Turkey is still sitting in the dark after almost six months of work stoppage on the project.
Energies traders will be awaiting the US' API Weekly Crude Oil Stocks update for the week into September 29th due late in the Tuesday trading session. US crude reserves were last shown down 1.586M barrels as global production flubs crude demand by nearly 2 million bpd.
WTI technical levels
WTI crude barrel prices are looking for a recovery after getting kicked down nearly 7.5% from the last peak just pennies shy of the $94.00 handle.
Last week's top end represents a ten-month high for WTI, and US crude oil has closed higher for four consecutive trading weeks.
Technical support on the daily candles is coming from the 34-day Exponential Moving Average just north of $86.00, and medium-term bullish momentum for WTI prices sees bids well above the 200-day Simple Moving Average (SMA) currently turning bullish into $78.00.
WTI daily chart
WTI technical levels
Author
Joshua Gibson
FXStreet
Joshua joins the FXStreet team as an Economics and Finance double major from Vancouver Island University with twelve years' experience as an independent trader focusing on technical analysis.
