- The WTI recovers $ 61.00 to quote in a tight range between the 10 -day SMA and the 20 -day SMA.
- Oil prices remain under pressure in an uncertain economic scene, but technical levels continue to contribute to short -term price action.
- With the investors monitoring the global growth prospects, key psychological levels provide additional support and resistance barriers between the price range of 60.00 $ – $ 64.00.
Crude oil prices have bounced on Friday, allowing prices to eliminate Thursday losses.
At the time of writing, the WTI crude oil quotes 1.20% higher in the day, moving above the previous psychological resistance that has become a support in 61,000.
After experiencing two consecutive days of losses, the failure to fall below the Fibonacci recoil level of 23.6% of the accumulated fall from January to April in 60,588 has provided temporary relief for the upward operators of the WTI oil.
Currently, the simple mobile average (SMA) is positioned just below in 60,419, while the 10 -day SMA offers immediate resistance about 61,805. The prices are currently fluctuating within a narrow range defined by these SMA levels, with the relative force index (RSI) reading at 49.00, indicating a neutral impulse.
WTI crude oil daily graphics
With several fundamental factors influencing oil prices, there are technical challenges both up and down.
In order for the bullish trend to win impulse, a strong bullish movement is necessary above the 10 -day SMA and a break above the next psychological barrier in 62,000. If that level is exceeded, the 50 -day SMA in 63,270 could pave the way for a test level of 38.2% of the accumulated fall of the year, which is located at 64,179.
On the contrary, if the sellers manage to push prices below 60,588 and the 20 -day SMA, the minimum of April 10 in 58,376 and the accumulated minimum of the year of 54,785 could come into play.
WTI FAQS oil
WTI oil is a type of crude oil that is sold in international markets. WTI are the acronym of West Texas Intermediate, one of the three main types that include the Brent and Dubai’s crude. The WTI is also known as “light” and “sweet” by its relatively low gravity and sulfur content, respectively. It is considered high quality oil that is easily refined. It is obtained in the United States and is distributed through the Cushing Center, considered “the crossing of the world.” It is a reference for the oil market and the price of WTI is frequently traded in the media.
Like all assets, supply and demand are the main factors that determine the price of WTI oil. As such, global growth can be a driver of the increase in demand and vice versa in the case of weak global growth. Political instability, wars and sanctions can alter the offer and have an impact on prices. OPEC decisions, a group of large oil -producing countries, is another key price factor. The value of the US dollar influences the price of WTI crude oil, since oil is mainly traded in US dollars, so a weaker dollar can make oil more affordable and vice versa.
Weekly reports on oil inventories published by the American Petroleum Institute (API) and the Energy Information Agency (EIA) influence the price of WTI oil. Changes in inventories reflect the fluctuation of supply and demand. If the data show a decrease in inventories, it can indicate an increase in demand, which would raise the price of oil. An increase in inventories may reflect an increase in supply, which makes prices lower. The API report is published every Tuesday and that of the EIA the next day. Their results are usually similar, with a 1% difference between them 75% of the time. EIA data is considered more reliable, since it is a government agency.
The OPEC (Organization of Petroleum Exporting Countries) is a group of 13 nations oil producing that collectively decide the production quotas of member countries in biannual meetings. Their decisions usually influence WTI oil prices. When OPEC decides to reduce fees, it can restrict the supply and raise oil prices. When OPEC increases production, the opposite effect occurs. The OPEC+ is an expanded group that includes another ten non -members of the OPEC, among which Russia stands out.
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
