WTI treads water around $74.50 amid OPEC+ impasse, mixed sentiment


  • WTI stalls its recovery from three-week lows amid a cautious start to the week.
  • Upbeat EIA stocks data, risk-on mood rescue the oil bulls last week.
  • Covid concerns remain a risk, as Delta variant flares up globally.

WTI (futures on Nymex) has turned south towards the midpoint of the $74 level after the recovery ran into offers just shy of the $75 mark.

The mixed market mood starting out a fresh week and a pause in the US dollar’s sell-off seemingly cap the recovery mode in the US. Additionally, escalating covid cases in the Asia-Pac region and its impact on the global growth also weighs on the higher-yielding oil.

 At the time of writing, the black gold is trading at $74.56, almost unchanged on the day, having ended the week in the red.

Last’s week solid rebound in WTI price from three-week lows of $70.76 could be associated with a bigger-than-expected draw in the US weekly crude inventories, as reported by the Energy Information Administration (EIA) on Thursday.

Meanwhile, a stand-off amongst the OPEC and its allies (OPEC+) on a potential increase in oil output also supports the uptrend in prices. The United Arab Emirates (UAE) rejected a proposed eight-month extension to OPEC+ output curbs, which led to a fallout in the talks, despite a three-day meeting.

Looking ahead, the US consumer data, weekly crude inventories and covid updates will be closely eyed for fresh trading opportunities.

WTI technical levels to consider

WTI

Overview
Today last price 74.56
Today Daily Change -0.10
Today Daily Change % -0.14
Today daily open 74.04
 
Trends
Daily SMA20 72.89
Daily SMA50 69.02
Daily SMA100 65.48
Daily SMA200 56.21
 
Levels
Previous Daily High 74.14
Previous Daily Low 72.12
Previous Weekly High 76.4
Previous Weekly Low 70.28
Previous Monthly High 74.17
Previous Monthly Low 66.78
Daily Fibonacci 38.2% 73.37
Daily Fibonacci 61.8% 72.89
Daily Pivot Point S1 72.73
Daily Pivot Point S2 71.42
Daily Pivot Point S3 70.72
Daily Pivot Point R1 74.75
Daily Pivot Point R2 75.45
Daily Pivot Point R3 76.76

 

 

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