The WTI crude oil prices flashing green and recovered to $32.35, mainly after the emergency liquidity injected from the United States Fedra Reserve. The fresh geopolitical tension from Iraq supporting the energy prices. Moreover, the reason behind the oil price recovery could also be the surprise infusion of liquidity from the Bank Of Japan. The U.S. Crude Oil WTI Futures traded 2.7% higher to $32.35.
The WTI Crude Oil prices recovered today after the Federal Reserve moved to provide $1.5 trillion in short-term liquidity and changed durations of Treasuries it buys.
Despite today’s recoveries, crude oil markets fell almost 30% this week after Saudi Arabia and Russia prices war and decided not to cut production further and instead sell at lower prices, raising fears of a price war.
Meanwhile, the U.S. decision to ban travel from some European countries as President Donald Trump’s main tactic to control COVID-19 also disappointed the investor’s sentiment.
Traders are expecting that the talks between U.S. President Donald Trump and Saudi Prince may help to stop the fall in crude prices while, on the other hand, Russia’s willingness to attend the OPEC+ meeting on March 18 adds smiles on the face of the oil trades.
Looking forward, qualitative catalysts could keep the driver’s seat, whereas the weekly release of the Baker Hughes US Oil Rig Counts, prior 682, will entertain the traders.
Daily Support and Resistance
- S1 26.84
- S2 29.16
- S3 30.25
Pivot Point 31.49
- R1 32.57
- R2 33.81
- R3 36.13
Technically, crude oil is trading at $32.36 per barrel, mostly maintaining sideways trading range of 34.40 – 27.33. At the moment, 34.35 resistance is very, very crucial for crude oil as the MACD is in the buying zone, and traders need a reason to go long on crude oil. Breakout of 34.35/40 can be that reason which may attract some buying in crude oil and may lead its prices towards 38. Let’s look to stay bearish below 34 as below this; crude can head to target the next support level of 31.50. Good luck!