WTI traders bracing for impact at 10:00 GMT

Ross J Burland FXStreet

The price of oil is going to be on trader's watchlists for the open at 10:00 GM today due to Hurricane Ida that is still a Category 4 storm with maximum sustained winds of 130 mph, according to the National Hurricane Center's 5 p.m. ET advisory.

S&P Platts has reported that more than 95% of Gulf crude oil and 94% of natural gas are offline.

''Power outages in Louisiana and beyond were spreading Aug. 29 after Category 4 Hurricane Ida made a Louisiana landfall after roughly 95% of the US Gulf's oil and gas production was shut in and many Louisiana refineries and petrochemical plants were closed in advance of the major storm.''

This makes for the 10GMT open a priority event in energy markets on Monday and CAD and NOK crosses will be high up on market-maker's agendas today.

Chart of the Week: GBP/CAD is ripening for a short below 1.7350

Meanwhile, US West Texas Intermediate (WTI) spot ended Friday some 1.37% higher, rallying from a low of $67.55 to score a high of $69.02 on the day.

Overall, oil prices were posting their biggest weekly gains in over a year.

For the week, Brent gained over 11% and WTI rose more than 10%, which was the biggest weekly percentage gains for both since June 2020. Brent futures rose $1.63, or 2.3%, to settle at $72.70 a barrel, while WTI crude rose $1.32, or 2.0%, to settle at $68.74. That was the highest close for Brent since Au 2 and for WTI since Aug 12.

WTI technical analysis

From a technical perspective, the 78.6% Fibonacci level near 68 the figure has been breached and would now be expected to act as support.

This leaves the weekly counter-trendline near the 69.50/71 territories back in view.

A break of the near term daily and weekly resistance structures, including the counter-trendline, will leave scope for a continuation towards July's highs near 77.00.

On the downside, the focus would be on 66.50 and a break there will expose daily swing lows near 61.80 then 57.30.

Author

Ross J Burland

FXStreet

Ross J Burland, born in England, UK, is a sportsman at heart. He played Rugby and Judo for his county, Kent and the South East of England Rugby team.

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