WTI struggles around $100.00 on higher API oil inventories, upside story still solid

The black gold is facing barricades at around $100.00 as API reported oil build-up.
OPEC cartel has not promised more oil to cool-off volatility in the oil prices.
Lockdown fears in China may bring a significant impact on oil prices.

Sagar Dua FXStreet

West Texas Intermediate (WTI), futures on NYMEX, is struggling to overstep the psychological resistance of $100.00 in the Asian session. The black gold has observed mild selling pressure after the American Petroleum Institute (API) reported a build-up of oil inventories for the past week by 1.86 million barrels. Gasoline inventories rose by 1.29 million barrels, however, the distillate stocks fell by 2.1 million barrels.

On a broader note, the upside story remains solid as US President Joe Biden has failed to fetch the promise of more oil from the OPEC cartel. The US administration is committed to bringing price stability to oil prices. To fulfill the same, US President Joe Biden visited Saudi Arabia for bringing more oil supply to the table. However, the unavailability of the promise of more oil during the visit has strengthened the oil bulls.

Considering the elevated oil prices, the major oil suppliers Saudi Arabia and the United Arab Emirates (UAE) seem not interested in injecting more oil into the global supply. The OPEC nations are operating near their full-capacity levels and are enjoying premium prices. Therefore, the nations have not shown any interest in adding capacity despite having the right infrastructure.

Other OPEC nations don’t have the ability to expand their capacity. Also, a few OPEC nations are unable to produce the stated oil. Prohibition of oil imports from Russia by the Western leaders will keep haunting the oil bulls for a prolonged period.

No doubt, the escalating odds of lockdown in China due to the recurring resurgence of Covid-19 will bring a slump in demand for oil. The impact is temporary as lockdown measures won’t sustain for a longer period. It is worth noting that China is a leading consumer of oil and any slump in the overall demand in China will bring a significant impact on oil prices.

WTI US OIL

Overview
Today last price	99.79
Today Daily Change	-0.37
Today Daily Change %	-0.37
Today daily open	100.16

Trends
Daily SMA20	101.64
Daily SMA50	108.35
Daily SMA100	106.26
Daily SMA200	93.41

Levels
Previous Daily High	100.69
Previous Daily Low	96.28
Previous Weekly High	102.6
Previous Weekly Low	88.34
Previous Monthly High	121.36
Previous Monthly Low	101.17
Daily Fibonacci 38.2%	99.01
Daily Fibonacci 61.8%	97.97
Daily Pivot Point S1	97.39
Daily Pivot Point S2	94.63
Daily Pivot Point S3	92.98
Daily Pivot Point R1	101.81
Daily Pivot Point R2	103.46
Daily Pivot Point R3	106.22

Author

Sagar Dua

FXStreet

Sagar Dua is associated with the financial markets from his college days. Along with pursuing post-graduation in Commerce in 2014, he started his markets training with chart analysis.

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