WTI testing daily highs around $71.00

  • Crude oil prices are inching higher on Monday around $71.00.
  • Traders’ focus remain on Iran and potential US sanctions.
  • API, EIA reports coming in next on Tuesday and Wednesday.

Prices of the barrel of American benchmark for the sweet light crude oil are resuming the upbeat mood today and regaining the $71.00 neighbnourhood.

WTI looks to data

The West Texas Intermediate is trading on a firm note at the beginning of the week after two consecutive daily declines, coming down from last week’s YTD peaks in the boundaries of the $72.00 mark per barrel.

The likelihood of US sanctions against Iran continues to underpin the sentiment among traders and so far keeps occasional dips shallow.

WTI has reverted the initial negative sentiment as trader were adjusting to another uptick in US oil rig count, as per Friday’s report by driller Baker Hughes coupled with increasing US oil production.

Looking ahead, the usual weekly reports by the API (Tuesday) and the EIA (Wednesday) will be in the limelight.

On the positioning front, crude oil speculative net longs dropped to the lowest level since March 13 during the week ended on May 8, as per the latest CFTC report.

WTI significant levels

At the moment the barrel of WTI is up 0.64% at $70.97 and a breach of $69.80 (10-day sma) would aim for $68.55 (21-day sma) and finally $66.86 (low May 1). On the other hand, the next up barrier emerges at $71.86 (2018 high May 10) followed by $72.00 (psychological level).

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Feed news

How do emotions affect trade?
Follow up our daily analysts guidance

Subscribe Today!    

Latest Forex News

Latest Forex News

Editors’ Picks

EUR/USD battles with 1.1700 as the market mood turns sour

Poor German data and renewed concerns about a default of the Chinese Evergrande property giant undermined investors’ sentiment, pushing them into the dollar’s safety.


GBP/USD accelerates its slump, trades around 1.3650

GBP/USD is under strong selling pressure, trimming most of its post-BOE gains. Concerns about the global financial health and slow moves towards tapering weigh on markets.


XAU/USD hangs near multi-week lows, around $1,745 ahead of Powell

Gold struggled to capitalize on its attempted intraday recovery move. Hawkish Fed/BoE, rising bond yields acted as a headwind for the metal. Resurgent USD demand exerted additional pressure on the commodity.

Gold News

PBoC imposes ban on crypto trading as it fosters ‘illegal financial activity’

PBoC bans crypto trading activities and a plethora of associated services, labeling it “illegal.” Overseas cryptocurrency exchanges providing services to Chinese residents will be investigated in accordance with the law. 

Read more

Evergrande, VIX and yields make for choppy day ahead

Equity markets remain focused on Evergrande as rumours of a possible default on overseas debt swirl. The market appears to be on the hunt for negative news, which leads us to conclude that stocks are going lower in the short term.

Read more