WTI looks vulnerable near $79 mark, ignores Iran news, demand optimism

Vitol Senior Executive said on Wednesday, global oil demand has risen above 100 million barrels per day (bpd) despite roughly 2 million bpd jet fuel demand missing, Reuters reports, citing sources familiar with the matter.

Earlier this week, Russell Hardy, CEO of the commodity trading group, said: “Global oil market fundamentals will likely remain tight over the coming year as oil demand continues to build after having mostly fully recovered to 2019 pre-pandemic levels.”

Additional quotes

"So then when you begin to look forward into 2022, clearly demand is going to carry on increasing.”

"A US SPR release...should dampen a little bit the front end of the market but it doesn't change things fundamentally. Next year is still expected to remain in a reasonably tight [oil market] balance," Hardy added.

Elsewhere, Iranian news agency, Tasnim, reported about an explosion at an oil pipeline in southern Iran. Although no additional details are mentioned about the same.

WTI looks south

WTI is off the lows but remains vulnerable amid the recent strength in the US dollar and a likely release of the oil supplies from the US Strategic Petroleum Reserve (SPR).

At the time of writing, the US oil is trading at $79.25, down 0.53% on the day. Sellers are taking a breather before embarking on their next journey southwards.

The crucial demand area around $77.94-$77.70 is the price zone beat for oil bears. Within that region, the ascending 50-Daily Moving Average (DMA) and November 4 low lie.

WTI technical levels to watch