- WTI rises close to 1%, but remains in a range around the $ 70 level, where the 100-day SMA is located.
- The geopolitical risks in Afghanistan and the hurricane in the Gulf of Mexico raise the price of US oil.
- WTI has room to rise to $ 70.40 amid bullish technical indicators.
After hitting four-week highs at $ 70.70 on Thursday, the WTI (NYMEX futures) saw a rapid retracement near the $ 69.65 region before entering a consolidation phase around the $ 70.00 level, where it now oscillates.
WTI awaits NFP for new leads
Despite the lateral movement on Friday, WTI is still on track to mark the second consecutive weekly profit. The cautious market mood ahead of the critical US NFP report is preventing bulls from opening new positions in higher-yielding oil.
US payroll data is likely to provide new guidance on the Fed’s downsizing plan, which will affect risk sentiment, valuation around the US dollar, and ultimately USD-sensitive black gold.
On the fundamental front of oil, a reduction in weekly US crude reserves, published by the Energy Information Administration (EIA), and the result of the policy of OPEC and its allies (OPEC +) continues to support sentiment around to oil.
OPEC + agreed to maintain its current policy of gradual increases in oil production. However, the upward revision of its demand outlook for 2022 bodes well for commodity prices.
WTI technical levels
“$ 68.40 offers strong support to the energy benchmark WTI, while moves to the upside should await a clear breakout of the 50-day SMA, around $ 70.00. A downtrend line at $ 70.00 also acts as an obstacle to the upside. as of July 6, about $ 70.35, “says Anil Panchal, analyst at FXStreet.
Additional levels of the WTI
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