The price of WTI crude oil has remained positive, rising 2.60% intraday to roughly $67.90 during the early hours of Monday morning in Europe.
The dark gold prices first rose in response to the market’s guarded optimism and the oil producers’ recent movements, but a lack of strong triggers has recently limited the quote’s ability to rise.
After first affecting Europe and the United Kingdom, the virus strain is tightening its hold on the world, with its sights set on major global powers such as the United States and China.
Global experts, on the other hand, are hopeful that they will be able to develop a vaccine for the COVID-19 Omicron strain.
Recently, the United States’ top medical officer, Anthony Fauci, endorsed Pfizer’s medicine as being successful against Omicron, while reports of chewing gum to prevent the spread of the virus and the United Kingdom’s campaign for treatment also give traders reason to be optimistic.
Across the Pacific, prospects for stimulus from Japan and China are circulating as both Asian giants fight to contain domestic economic anxieties.
It is possible to see this in the somewhat higher bid market futures from the United States and Europe, as well as the slightly stronger US Treasury rates.
Notably, the Fed’s rate hike concerns have kept oil traders on their toes for the past four days, causing prices to hover around multi-day low levels.
Specifically related to oil, recent news has focused on Saudi Arabia’s effort to increase its production of Arab light crude, as well as worries over Iran’s willingness to accept the nuclear agreement presented by the United States.
Oil buyers are also encouraged by the OPEC+ decision to adhere to its already announced output increase of 400,000 barrels per day (BPD) each month and nothing more, as reported by Reuters.
Moving forward, weekly inventory data may provide intermediate changes, but the Consumer Price Index (CPI) data from the United States on Friday will be closely scrutinized for obvious direction.
Analysis Of The Technical Aspects
WTI CHART Source: Tradingview.com
WTI has maintained its rebound off an upward-rising support line established on March 23. The negative MACD indications and a weekly declining trend line near $68.25, however, pose a challenge to the bullish energy bulls’ position.
Even if the price of WTI goes over $68.25, the 200-day moving average (DMA) and the 10-day moving average (DMA), which are respectively at $69.90 and $70.45, would pose a hurdle to WTI purchasers.
Instead, the indicated support line from March, which is around $64.70, becomes the crucial level to monitor for the arrival of the WTI bears into the market.