Oil prices have picked bids around $84.00 after a corrective move. (Pivot Orderbook analysis)

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• Oil prices have picked bids around $84.00 after a corrective move.
• The EIA is expected to report a build-up of oil inventories by 0.2M barrels.
• Hawkish monetary policies by global central banks may impact oil demand ahead.

The pair currently trades last at 84.41.

The previous day high was 85.74 while the previous day low was 82.82. The daily 38.2% Fib levels comes at 84.62, expected to provide resistance. Similarly, the daily 61.8% fib level is at 83.93, expected to provide support.

West Texas Intermediate (WTI), futures on NYMEX, have rebounded after dropping to near $84.00 in the Tokyo session. The oil prices corrected in the late New York session after reporting healthy gains as the American Petroleum Institute (API) displayed a build-up of stockpiles for the last week ending October 24.

The oil stockpiles reported addition of 4.52M barrels of oil which indicates a decline in oil demand last week. It is worth noting that the US administration is releasing oil from the Strategic Petroleum Reserve (SPR) to address cuts in the global oil supply by OPEC. Therefore, the oil inventory buildup could be the outcome of additional oil infusion.

A tug of war between distinct ideologies of the US administration and the oil cartel as the former has pledged to weaken oil prices to trim global inflationary pressures while the latter believed the oil prices are imbalanced and are required to be stabilized with production cuts.

US President Joe Biden announced that the oil released from SPR will be replenished once oil prices will drop below $70.00.

Going forward, the critical oil report from Energy Information Administration (EIA) will display a true picture of oil inventories. As per the projections, the EIA report will report a marginal build-up of oil by 0.2M barrels.

Meanwhile, the People’s Bank of China (PBOC) has announced a liquidity infusion of CNY 280B through seven-day Reverse Repo at 2% through open market operations.

This week, monetary policies from global central banks will be the major trigger. The Bank of Canada (BOC), the European Central Bank (ECB), and the Bank of Japan (BOJ) will announce their interest rate decision. The BOC and ECB are expected to deliver a hawkish stance while the BOJ would stick to its dovish remarks.

Technical Levels: Supports and Resistances

XTIUSD currently trading at 84.41 at the time of writing. Pair opened at 84.67 and is trading with a change of -0.31 % .

The pair remains strongly bearish on the daily time frame. It trades below the 20 SMA @ 85.3, 50 SMA 86.29, 100 SMA @ 93.51 and 200 SMA @ 97.32.

The previous day high was 85.74 while the previous day low was 82.82. The daily 38.2% Fib levels comes at 84.62, expected to provide resistance. Similarly, the daily 61.8% fib level is at 83.93, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 83.08, 81.49, 80.15
• Pivot resistance is noted at 86.0, 87.33, 88.92

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