Oil: WTI rebounds and cuts weekly losses

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  • Oil prices rise on Friday, still in negative for the week.
  • Expectations for the application of a price limit for Russian oil as of December 5.
  • Markets with low volume due to the US holiday.

The prices of Petroleum are rising on Friday, paring weekly losses. The context is of a rising dollar and also in the stock markets. The WTI barrel is moving away from the lows since January, although still unable to return above $80.00.

Discussions in the oil market range from weak prospects regarding demand, reflected in the contango; and the entry into force of the price limit on Russian oil. With China even applying a strong policy of restrictions due to COVID, there are still fears for the world demand for crude oil ahead.

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On December 5, the price limit for Russian oil imposed by the alliance of Western countries would come into force. Since Moscow they warn that this would have negative consequences for the world economy. Details on the application of the measure are awaited.

A larger-than-expected drop in US oil inventories was reported on Wednesday. Also for that day was the Baker Hughes rig count data (normally released on Fridays), which showed an increase from 623 to 627.

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The WTI barrel (trading platforms) stands at $79.15, a gain of almost 2% for the day. The rallies found resistance near $80.00. If confirmed above, the technical outlook would improve. In the opposite direction, at $78.10 the first support appears, followed later by $76.80, the minimum on Wednesday which, if it yields, would increase the downward pressures.

technical levels

WTI US OIL

Overview
Today’s last price 79.52
Today Daily Change 1.35
Today Daily Change % 1.73
Today daily open 78.17
trends
Daily SMA20 85.11
Daily SMA50 84.76
Daily SMA100 88.27
Daily SMA200 97.05
levels
Previous Daily High 78.23
Previous Daily Low 76.94
Previous Weekly High 89.11
Previous Weekly Low 77.6
Previous Monthly High 92.63
Previous Monthly Low 79.32
Daily Fibonacci 38.2% 77.74
Daily Fibonacci 61.8% 77.43
Daily Pivot Point S1 77.33
Daily Pivot Point S2 76.49
Daily Pivot Point S3 76.03
Daily Pivot Point R1 78.62
Daily Pivot Point R2 79.07
Daily Pivot Point R3 79.92

Source: Fx Street

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