WTI Crude Oil closed at $ 64.92 after placing a high of $ 65.75 and a low of $ 63.95. It continued its bearish streak for the fourth straight session on Monday and extended its losses. WTI Oil prices fell on Monday and abandoned all previous gains amid a cyberattack that forced the shutdown of major oil pipelines in the United States. Colonial Pipeline in the United States said its main fuel lines remained offline after the attack that shut down the system; however, some smaller lines between terminals and delivery points have started operations.
Commerce Secretary Gin Raimond said the White House was working closely with Colonial to help it recover, as repairing the pipeline was a top priority for the Biden administration. This bad news and the rising infection rate in India have kept crude oil under great pressure. The pandemic situation in India worsened as death rates and infection rates remained near Monday’s daily highs. Another reason for the latest drop in oil prices was the recent statement by the World Health Organization. On Monday, the world body said it had changed its classification of the B.1.617 variant of the coronavirus first found in India last October, from a variant of interest to a variant of concern.
India has seen massive infections and death rates although observers say the real numbers were much higher. WHO believes the variant may be more contagious than the original form and may be vaccine resistant. This news added to risk-free market sentiment and weighed on crude oil prices. In addition, the Jordanian Ministry of Energy and Mineral Resources has issued a tender to transport crude oil by road from the loading site in Iraq to the Jordanian oil refinery site at 10,000 barrels per day. the US dollar index (DXY) recovered some of its losses and reached the level of 90.34, while the yield on US Treasuries rose to 1.60% and reinforced the rise of the US dollar. Crude oil and the US dollar have a negative correlation, which means that the rise in the price of the US dollar has increased the pressure on crude oil. The dollar was high and recovering as fears of accelerating inflation caused the stock market value to drop and benefited the greenback.
Daily technical levels
Support resistance
65.23 65.62
65.00 65.78
64.84 66.01
Pivot Point: 65.39
WTI Crude Oil is trading slightly lower, holding a tight trading range of 66.55 to 63.08. Technical indicators suggest a strong bullish bias, with MACD and RSI rising above average levels, indicating a bullish bias among investors. On the higher side, a bullish breakout of the 66.55 levels can drive buying trends up to 67. At the same time, breaching the support at the 64.16 level can trigger sells up to 62. , 89 and 62. Let’s keep an eye out for the 64.16 levels today, as the sell can be seen below and the buy above the same level. Good luck!
