WTI rebound crosses $77.00 as China-linked fears ease, EU struggles over Russian oil price cap


  • WTI extends the previous day’s corrective bounce off yearly low.
  • Downbeat daily infections, support measures for real-estate firms favor markets in China and abroad.
  • Rumors over OPEC+ production cuts, European Union’s struggle over Russian oil price cap keeps oil buyers hopeful.
  • Risk catalysts, weekly industry inventory data can direct short-term moves.

WTI crude oil picks up bids to refresh intraday high near $77.25 while extending the late Monday’s recovery from the yearly low during Tuesday’s Asian session.

The commodity’s latest rebound could be linked to the market’s cautious optimism as well as speculations that the OPEC+ will aim for production cuts during the next meeting. Also keeping the energy buyers hopeful is the European Union’s struggle to announce a price cap on Russian crude oil exports.

An easing in China’s daily covid infections from an all-time high of 40,347 to 38,645 appeared to have triggered the market’s latest cautious optimism. On the same line could be the upbeat performance of Chinese equities as the national securities regulator lifted a ban on equity refinancing for listed property firms, per Reuters. “The China Securities Regulatory Commission (CSRC) said late on Monday it would broaden equity financing channels, including private share placements for China and Hong Kong-listed Chinese developers, lifting a ban that has been in place for years,” mentioned the news.

Elsewhere, Reuters quoted an anonymous diplomat from the bloc to highlight the deadlock surrounding the European Union’s (EU) push for restricting the price of Russian oil. “European Union governments failed to agree on Monday on a price cap on Russian seaborne crude oil, as Poland insisted that the cap had to be set lower than proposed by the G7 to cut Moscow's ability to finance its invasion of Ukraine, diplomats said,” reported Reuters.

On a different page, speculations that the global may aim for more production cuts also seemed to have favored the oil buyers of late. “The rumors of a possible cut outweighed an earlier sell-off built on the weak outlook out of China, where hundreds of demonstrators and police clashed on Sunday over strict COVID restrictions that have limited free moment among millions of residents,” per Reuters.

Against this backdrop, the US stock futures and equities in the Asia-Pacific region print mild gains despite the downbeat performance of Wall Street, which in turn favor riskier assets like WTI crude oil.

Moving on, developments surrounding the aforementioned risk catalysts will be crucial for WTI traders to watch. Also important will be the API Weekly Crude Oil Stock for the period ended on November 25, prior -4.8M.

Technical analysis

Despite the latest rebound, triggered mainly due to the oversold RSI conditions, the WTI crude oil remains on the bear’s radar unless crossing a three-week-old resistance line, near $80.25.

Additional important levels

Overview
Today last price 77.27
Today Daily Change 0.40
Today Daily Change % 0.52%
Today daily open 76.87
 
Trends
Daily SMA20 84.09
Daily SMA50 84.42
Daily SMA100 87.76
Daily SMA200 96.91
 
Levels
Previous Daily High 77.85
Previous Daily Low 73.66
Previous Weekly High 82.3
Previous Weekly Low 75.28
Previous Monthly High 92.63
Previous Monthly Low 79.32
Daily Fibonacci 38.2% 76.25
Daily Fibonacci 61.8% 75.26
Daily Pivot Point S1 74.4
Daily Pivot Point S2 71.93
Daily Pivot Point S3 70.21
Daily Pivot Point R1 78.6
Daily Pivot Point R2 80.32
Daily Pivot Point R3 82.79

 

 

Share: Feed news

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Recommended content


Recommended content

Editors’ Picks

EUR/USD recovers from two-year lows, stays below 1.0450

EUR/USD recovers from two-year lows, stays below 1.0450

EUR/USD recovers modestly and trades above 1.0400 after setting a two-year low below 1.0350 following the disappointing PMI data from Germany and the Eurozone on Friday. Market focus shifts to November PMI data releases from the US.

EUR/USD News
GBP/USD falls to six-month lows below 1.2550, eyes on US PMI

GBP/USD falls to six-month lows below 1.2550, eyes on US PMI

GBP/USD extends its losses for the third successive session and trades at a fresh fix-month low below 1.2550 on Friday. Disappointing PMI data from the UK weigh on Pound Sterling as investors await US PMI data releases.

GBP/USD News
Gold price refreshes two-week high, looks to build on momentum beyond $2,700 mark

Gold price refreshes two-week high, looks to build on momentum beyond $2,700 mark

Gold price hits a fresh two-week top during the first half of the European session on Friday, with bulls now looking to build on the momentum further beyond the $2,700 mark. This marks the fifth successive day of a positive move and is fueled by the global flight to safety amid persistent geopolitical tensions stemming from the intensifying Russia-Ukraine war.

Gold News
S&P Global PMIs set to signal US economy continued to expand in November

S&P Global PMIs set to signal US economy continued to expand in November

The S&P Global preliminary PMIs for November are likely to show little variation from the October final readings. Markets are undecided on whether the Federal Reserve will lower the policy rate again in December.

Read more
Eurozone PMI sounds the alarm about growth once more

Eurozone PMI sounds the alarm about growth once more

The composite PMI dropped from 50 to 48.1, once more stressing growth concerns for the eurozone. Hard data has actually come in better than expected recently – so ahead of the December meeting, the ECB has to figure out whether this is the PMI crying wolf or whether it should take this signal seriously. We think it’s the latter.

Read more
Best Forex Brokers with Low Spreads

Best Forex Brokers with Low Spreads

VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.

Read More

Forex MAJORS

Cryptocurrencies

Signatures