WTI trims some of Thursday’s gains and tests levels below $88.00

  • Oil prices are seeing a modest pullback after hitting a 13-day high early Friday.
  • WTI retested the $88.00 area, but there is still a lot of strength in the bids as markets weigh geopolitical concerns.
  • Bid interest remains high in crude oil, and bearish moves will face continued bullish pressure.

The prices of West Texas Intermediary (WTI) oil are down for Friday, albeit slightly, as ongoing geopolitical tensions in the Gaza Strip threaten to boil over and global production continues to dampen demand for barrels.

Crude oil prices rose on Thursday and briefly extended early on Friday, taking WTI to $89.64 to retest its highest bids in nearly three weeks of trading, before a pullback toward $88.00 a barrel.

Geopolitical tensions between Israel and Hamas continue to weigh on oil markets, as investors worry about a possible spill that could destabilize the region near the Strait of Hormuz; While Israel and Palestine are not major players in crude oil markets, the nearby Strait of Hormuz is a key choke point for global oil supplies, with one-fifth of all oil supply passing through its waters.

This week it emerged that the US will lift sanctions imposed on Venezuelan oil exports, in an attempt to shore up world oil markets, which are woefully undersupplied. However, Venezuelan oil producers remain well below capacity, and it will be some time before Venezuelan barrels begin to ease the supply shortage.

Technical outlook for WTI

Crude oil has continued its healthy rebound since October’s drop to $80.63, with WTI bids up around 9% from the low at the start of the month, and a bullish continuation will pave the way for a run to highs of September at $94.00.

The downside is being capped by the 50-day simple moving average, which is currently pushing higher from below $86.00, and the daily candlesticks have so far been unwilling to push too far beyond the technical barrier, with the 200-day SMA rolling into a bullish position from $78.00.

WTI Daily Chart

WTI technical levels

WTI US OIL

Overview
Latest price today 88.51
Today Daily variation -0.53
Today’s daily variation -0.60
Today’s daily opening 89.04
Trends
daily SMA20 86.76
daily SMA50 85.27
SMA100 daily 79.89
SMA200 daily 77.83
Levels
Previous daily high 89.39
Previous daily low 85.39
Previous weekly high 86.63
Previous weekly low 81.45
Previous Monthly High 93.98
Previous monthly low 83.09
Daily Fibonacci 38.2 87.86
Fibonacci 61.8% daily 86.92
Daily Pivot Point S1 86.49
Daily Pivot Point S2 83.94
Daily Pivot Point S3 82.48
Daily Pivot Point R1 90.49
Daily Pivot Point R2 91.94
Daily Pivot Point R3 94.5

Source: Fx Street

You may also like