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Oil: WTI trims gains after hitting three-week highs

  • Oil price rises again and extends the rally from lows in months.
  • Comments on possible cut in production and technical factors support the rise.
  • Economic data complicate growth outlook.

Oil prices are rising again on Wednesday, accumulating three days higher. The barrel of WTI (trading platforms) reached as high as $95.07, the maximum level in three weeks. It then trimmed gains and pulled back to the $94.00 area.

change of focus

Despite data released on Tuesday, which showed more signs of an economic slowdown in Europe and the US, oil rose significantly, posting the highest daily close since late July. The possibility raised by the Saudi Arabian energy minister of lower production helped the rise, which was completed with a drop in the dollar.

The attention of the financial markets is focusing on what will be the Jackson Hole symposium, where the main central bank officials will speak. On Friday it will be Jerome Powell’s turn.

US oil inventory data will be released later on Wednesday.

The technical outlook for WTI is positive in the short term after breaking out of a multi-week bearish line. A return below $90.50 could change this scenario. To the upside, a confirmation above $95.00 would enable further rally, with resistance then at $95.60, followed by $96.00 and $96.40.

Technical levels

WTI US OIL

Panorama
Last Price Today 94.11
Today’s Daily Change 0.46
Today’s Daily Change % 0.49
Today’s Daily Opening 93.65
Trends
20 Daily SMA 91.26
50 Daily SMA 97.87
100 Daily SMA 102.76
200 Daily SMA 94.75
levels
Previous Daily High 94.1
Previous Daily Minimum 90.4
Previous Maximum Weekly 91.64
Previous Weekly Minimum 85.39
Monthly Prior Maximum 109.54
Previous Monthly Minimum 88.34
Daily Fibonacci 38.2% 92.68
Daily Fibonacci 61.8% 91.81
Daily Pivot Point S1 91.33
Daily Pivot Point S2 89.01
Daily Pivot Point S3 87.62
Daily Pivot Point R1 95.03
Daily Pivot Point R2 96.42
Daily Pivot Point R3 98.74

Source: Fx Street

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