- WTI attempts a recovery after a sharp correction from more than six-year highs.
- Tighter supply concerns amid the fallout from OPEC + sustain US oil.
- The API’s weekly reserves of US crude oil catch the eye of investors amid an appetite for risk in the markets.
The WTI (Nymex futures) is making an impressive recovery from four-day lows of $ 72.94, while bulls are now looking to regain the $ 75.00 level amid an upbeat market mood.
At the time of writing, US WTI oil is up 1.21% on the day at $ 74.20, reversing the sharp correction seen Tuesday from the highest levels since November 2014 at $ 76.98.
Black gold rose to multi-year highs on concerns over tighter oil supplies unable to match potential demand growth, especially after OPEC and its allies (OPEC +) left the meeting after failing to agree on production policy for the third time.
However, rally to new 2021 highs failed to holdas sellers returned on concerns that rising oil prices could increase inflation, potentially dampening the global economic recovery.
So far this Wednesday, WTI price is supported by improved risk sentimentas European equities are trading positive along with US stock index futures. In addition, concerns about tighter oil markets continue to provide underlying support for the WTI, as the focus now shifts to the weekly crude stock report to be published by the American Petroleum Institute (API) later today.
The subdued tone observed in the US dollar across the board is also being positive for the WTI, denominated in dollars. Investors await the FOMC minutes for a new USD price action that could finally have a significant influence on oil prices.
WTI technical levels