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
Author
Dhwani Mehta
FXStreet
Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.
