- 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
|Today last price||74.56|
|Today Daily Change||-0.10|
|Today Daily Change %||-0.14|
|Today daily open||74.04|
|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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