untitled design

WTI cuts intraday losses, returns above $ 68.50 ahead of EIA report

  • Doubts about the outlook for global fuel demand sparked new sales around the WTI.
  • The boost from risk aversion benefited the dollar as a safe haven and further affected commodities.
  • Traders are looking forward to the official EIA report on US crude inventories for further momentum.

Crude oil WTI it witnessed a strong sell during the early American session and fell to the $ 67.65 area in the last hour, although it recovered somewhat thereafter.

The commodity was unable to capitalize on the good rally the day before from the week-long lows, instead meeting new offers on Thursday and falling nearly $ 2 from the daily highs. Concerns that the rapidly spreading Delta variant of the coronavirus could affect global demand for fuel continued to act as a roadblock to oil prices.

Market concerns were further fueled by the US Energy Information Administration (EIA), which lowered its forecast for global oil demand for 2021 on Wednesday. This, along with a report from the Energy Information Administration, which indicates that the reduction in crude oil for the week ending September 3 was less than expected, weighed on black gold.

Meanwhile, COVID-19 woes and expectations of an impending Fed phase-down announcement took their toll on global risk sentiment. This, in turn, benefited the relative safe-haven demand of the US dollar, which was seen as another factor that undermined dollar-denominated commodities, including oil, and contributed to the intraday decline.

Despite the negative factors, the commodity, so far, has managed to defend a strong horizontal support near the $ 67.65 zone. WTI crude oil quickly rallied to the $ 68.50-60 region as traders are now looking forward to the official EIA report on US crude oil inventories for a new boost. Apart from this, US price dynamics could provide some momentum.

Technical levels

.
Source Link

You may also like

Get the latest

Stay Informed: Get the Latest Updates and Insights

 

Most popular