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    WTI trades with modest gains above mid-$81,00s, bullish potential seems intact

    FXStreet
    Updated Mar 21, 2024 06:00
    Mitrade

    ■  WTI regains some positive traction on Thursday and is supported by a combination of factors.

    ■  The Fed’s projected three rate cuts in 2024 undermine the USD and benefit the black liquid.

    ■  Worries about tightening global support prospects for a further near-term appreciating move.


    West Texas Intermediate (WTI) US Crude Oil prices attract some dip-buying during the Asian session on Thursday and reverse a part of the previous day's losses. The commodity currently trades around the $81.70 region and remains well within the striking distance of over a four-month high touched earlier in the week.


    The Federal Reserve (Fed) maintains its outlook for three interest rate cuts this year at the end of the March policy meeting on Wednesday. This is seen undermining the US Dollar (USD) and benefitting USD-denominated commodities, including Crude Oil prices. Moreover, Fed Chair Jerome Powell acknowledged strength in the US economy, which bodes well with a positive outlook for Oil demand and further lends support to the black liquid.


    Adding to this, a larger-than-expected fall in the US crude inventories, along with potential supply shocks from geopolitical disruptions in Russia and the Middle East, suggests that the path of least resistance for Oil prices is to the upside. The official report published by the US Energy Information Administration (EIA) showed on Wednesday stockpiles declined unexpectedly by 2 million barrels to 445 million barrels during the week ended March 15.


    Market participants now look to the release of the flash PMIs for cues about global economic health, which impacts fuel demand. This, along with the USD price dynamics, should produce short-term trading opportunities around Oil prices. The aforementioned fundamental backdrop, meanwhile, seems tilted firmly in favour of bullish traders, suggesting that any meaningful corrective decline could be seen as a buying opportunity and remain limited.


    WTI US OIL


    Overview
    Today last price 81.71
    Today Daily Change 0.34
    Today Daily Change % 0.42
    Today daily open 81.37
     
    Trends
    Daily SMA20 78.92
    Daily SMA50 76.76
    Daily SMA100 75.55
    Daily SMA200 78.32
     
    Levels
    Previous Daily High 82.56
    Previous Daily Low 80.77
    Previous Weekly High 81.05
    Previous Weekly Low 76.5
    Previous Monthly High 79.27
    Previous Monthly Low 71.46
    Daily Fibonacci 38.2% 81.46
    Daily Fibonacci 61.8% 81.88
    Daily Pivot Point S1 80.57
    Daily Pivot Point S2 79.77
    Daily Pivot Point S3 78.78
    Daily Pivot Point R1 82.37
    Daily Pivot Point R2 83.36
    Daily Pivot Point R3 84.16

    * The content presented above, whether from a third party or not, is considered as general advice only.  This article should not be construed as containing investment advice, investment recommendations, an offer of or solicitation for any transactions in financial instruments.

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