Home » Technical Analysis » WTI Crude Oil inches Higher near $67.25 per Barrel

WTI Crude Oil inches Higher near $67.25 per Barrel

WTI oil crude

Looking at the U.S. West Texas Intermediate (WTI) crude oil futures contract, price action is catching a bid around $67.25 per barrel. Price action is also trading above the fifty, one hundred and two hundred (50, 100, 200) simple moving averages.

The Organization of Petroleum Export Countries (OPEC) and their non-member allies led by Russia will leave production as is for now to further balance prices in the oil markets. After the news, the benchmark WTI crude oil futures contract inched higher.

Iran has also announced their oil production could easily reach 6.5 million barrels per day. They are waiting for the United States to lift sanctions. This would add to the global oil supply. With continued coronavirus pandemic problems in Asia, this could cause prices to fall lower once again as demand for the black gold remains shaky. 

On the U.S. economic calendar today, the monthly Institute for Supply Management (ISM) will publish their manufacturing purchasing managers’ index. The world’s largest economy is also publishing final monthly flash PMI data.

The United Kingdom will publish their final monthly flash monthly manufacturing purchasing managers’ index and Nationwide will release their monthly housing price index. The European Union is releasing monthly consumer inflation data as well their final flash monthly manufacturing purchasing managers’ index. Germany and Italy are publishing labor data for May.

Daily WTI Crude Oil Technical Analysis

Looking at price action on the above daily MT 4 chart, the technical indicators are flattening out. The 14 day relative strength index (RSI) is looking neutral below seventy (70). With that said, the first upside barrier in play for the WTI oil contract lines up at $67.30 per barrel.

A sustained close above $67.30 opens the door to challenge $68.05 per barrel next with $68.60 per barrel then coming into the picture.

On the downside, a daily close below $65.95 per barrel will bring the technical support level at $65.35 into play. The next layer of technical support lines up at $64.60 per barrel.

About David Frank

David has his MA and PhD in Economics. He is a technical analyst who has been trading in the Forex world for over a decade. As an analyst and trader, David believes in the big picture by blending together technical analysis with the fundamentals behind the scenes in the Forex and Bond markets. David’s trading strategy is unique. He blends an understanding of fundamental and macroeconomics with technical analysis to offer a unique view into Forex. He applies several strategies including carry long positions, to take advantage of high yields in non-volatile markets, as well as using quicker, chart related analysis for day trading.

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