Note

WTI fluctuates around $87.80 on US stockpiles, Iran’s nuclear deal

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  • WTI is trimming some of its Tuesday’s losses, up by 0.80% in the North American session
  • US EIA stockpiles shed 7.06 million barrels last week, spurring a jump in oil prices.
  • China’s slower-than-expected growth pace, and Iran’s nuclear deal agreement, put a lid on higher oil prices.

Western Texas Intermediate (WTI) prices seesaw in a thin trading session after a US stockpile inventory spurred an uptick in oil prices when the US EIA revealed its weekly report illustrating that demand remains strong. At the same time, the US assesses Iran’s proposals for a nuclear deal.

In the meantime, WTI is trading at $87.84 PB, above its opening price, registering gains of 0.85% after hitting a daily low of $85.90.

WTI rises on lower US stockpiles

Sentiment deteriorated since the beginning of the European session. European bourses ended in the red, while US equities are dropping. The greenback rises, underpinned by Investors’ appetite for safe-haven assets, with the US Dollar Index hitting fresh three-week highs around 106.943, but at the time of writing, is at 106.752, up  0.27%.

The US EIA report showed that inventories fell by 7.06 million last week, while exports increased due to European buyers replacing Russia’s oil. Meanwhile, the Organization of the Petroleum Exporting Countries (OPEC) new Secretary  Haitham Al Ghais said that he was confident that global oil demand would increase by almost 3 million barrels a day, in 2022, via Bloomberg.

Aside from this, worries that China’s economy might grow at a slower pace keep oil participants uneasy. China’s Premier Li Kequiang demanded local officials, that account for 40% of China’s economy, to bolster growth measures following softer-than-expected Industrial Production and Retail sales.

Therefore, the WTI outlook is slightly tilted to the downside, as further news points to lower demand but increasing offers, exacerbating downward pressure on oil prices.

WTI Key Technical Levels

WTI US OIL

Overview
Today last price 87.84
Today Daily Change 0.66
Today Daily Change % 0.76
Today daily open 86.74
Trends
Daily SMA20 92.77
Daily SMA50 100.72
Daily SMA100 103.38
Daily SMA200 94.51
Levels
Previous Daily High 90.09
Previous Daily Low 85.39
Previous Weekly High 94.32
Previous Weekly Low 86.64
Previous Monthly High 109.54
Previous Monthly Low 88.34
Daily Fibonacci 38.2% 87.19
Daily Fibonacci 61.8% 88.3
Daily Pivot Point S1 84.73
Daily Pivot Point S2 82.71
Daily Pivot Point S3 80.03
Daily Pivot Point R1 89.43
Daily Pivot Point R2 92.11
Daily Pivot Point R3 94.12

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