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.

Dhwani Mehta FXStreet

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

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.

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