WTI pares intraday losses, back above mid-$68.00s ahead of EIA report

  • Doubts about the outlook for the global fuel demand prompted fresh selling around WTI.
  • The risk-off impulse benefitted the safe-haven USD and further weighed on the commodity.
  • Traders look forward to the official EIA report on US crude inventories for a fresh impetus.

WTI crude oil witnessed aggressive selling during the early North American session and dived to the $67.65 region in the last hour, albeit recovered a bit thereafter.

The commodity failed to capitalize on the previous day’s goodish rebound from one-week lows, instead met with some fresh supply on Thursday and dropped nearly $2 from the daily swing highs. Worries that the fast-spreading Delta variant of the coronavirus could dent the global fuel demand continued acting as a headwind for oil prices.

The market concerns were further fueled by the US Energy Information Administration (EIA), which lowered its 2021 global oil demand forecast on Wednesday. This, along with a report from the Energy Information Administration, indicating that crude drawdown for the week ended September 3 was smaller than expected, weighed on the black gold.

Meanwhile, COVID-19 woes and expectations for an imminent Fed taper announcement took its toll on the global risk sentiment. This, in turn, benefitted the US dollar’s relative safe-haven demand, which was seen as another factor that undermined dollar-denominated commodities, including oil, and contributed to the intraday slide.

Despite the negative factors, the commodity, so far, has managed to defend strong horizontal support near the $67.65 region. WTI crude oil quickly bounced back to the $68.50-60 region as traders now look forward to the official EIA report on US crude oil inventories for a fresh impetus. Apart from this, the US price dynamics might provide some impetus.

Technical levels to watch

WTI

OVERVIEW
Today last price 68.67
Today Daily Change -0.52
Today Daily Change % -0.75
Today daily open 69.19
TRENDS
Daily SMA20 67.35
Daily SMA50 69.71
Daily SMA100 68.6
Daily SMA200 62.29
LEVELS
Previous Daily High 69.56
Previous Daily Low 68.14
Previous Weekly High 70.44
Previous Weekly Low 67.02
Previous Monthly High 73.54
Previous Monthly Low 61.73
Daily Fibonacci 38.2% 69.02
Daily Fibonacci 61.8% 68.68
Daily Pivot Point S1 68.37
Daily Pivot Point S2 67.55
Daily Pivot Point S3 66.95
Daily Pivot Point R1 69.78
Daily Pivot Point R2 70.38
Daily Pivot Point R3 71.2


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