WTI crude oil price snap three-day downtrend but buyers appear confused. (Pivot Orderbook analysis)

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• WTI crude oil price snap three-day downtrend but buyers appear confused.
• Saudi Arabia defends OPEC+ supply cuts, Druzhba pipeline leak recall gas flow interruptions to Germany.
• Chatters over oil price cap, China adds strength to the recovery moves but cautious sentiment challenge buyers.
• US CPI, EIA inventories eyed for fresh impulse.

The pair currently trades last at 86.16.

The previous day high was 88.85 while the previous day low was 85.22. The daily 38.2% Fib levels comes at 86.61, expected to provide resistance. Similarly, the daily 61.8% fib level is at 87.46, expected to provide resistance.

WTI takes clues from the recent oil macros suggesting a supply crunch as it snaps a three-day losing streak with mild gains near $86.20 heading into Thursday’s European session.

Saudi Arabia rejects the latest US-led criticism of the Organization of the Petroleum Exporting Countries and allies including Russia, known collectively as OPEC+, supply cut agreement. The Saudi Arabian Foreign Ministry recently stated that the OPEC+ decision was unanimous, took into account the balance of supply and demand and aims at curbing market volatility.

Elsewhere, Bloomberg stated that US officials are concerned that Russia’s oil cap will fail as a result of the OPEC+ cut. Earlier, US Treasury Secretary Janet Yellen said that “Russia could profitably sell oil at historical prices in the $60 / barrel range.”

It should be noted that a leak in Russia’s Druzhba gas pipeline to Germany and Russian President Vladimir Putin’s blames on the Eurozone for the gas shortage adds strength to the oil prices. On the same line were Chinese media chatters suggesting the government’s plan to buy houses as a part of the stimulus, which in turn might tame recession fears in the world’s largest commodity user.

However, China’s softer oil demand for this winter and the US Energy Department’s concerns that the oil demand and production are expected to grow more slowly than previously forecast for the remainder of this year and in 2023, per Reuters, seemed to have exerted downside pressure on the black gold.

Above all, fears of recession and the market’s cautious mood ahead of the US Consumer Price Index (CPI) for September appear to challenge oil prices despite the latest rebound.

Despite the latest weakness, the 21-DMA puts a floor under the WTI prices at around $84.10.

Technical Levels: Supports and Resistances

XTIUSD currently trading at 86.16 at the time of writing. Pair opened at 86.01 and is trading with a change of 0.17% % .

The pair is trading above its 20 Daily moving average @ 84.01, below its 50 Daily moving average @ 87.14 , below its 100 Daily moving average @ 96.28 and below its 200 Daily moving average @ 97.12

The previous day high was 88.85 while the previous day low was 85.22. The daily 38.2% Fib levels comes at 86.61, expected to provide resistance. Similarly, the daily 61.8% fib level is at 87.46, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 84.54, 83.07, 80.92
• Pivot resistance is noted at 88.16, 90.32, 91.79

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