Albeit plunging below $76.00, WTI stages a comeback, trimming earlier losses to 0.51% (Pivot Orderbook analysis)

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• Albeit plunging below $76.00, WTI stages a comeback, trimming earlier losses to 0.51%
• Saudi officials denied news that OPEC considered increasing oil production.
• WTI Price Analysis: A candlestick hammer in the daily chart can propel oil prices higher.

The pair currently trades last at 79.81.

The previous day high was 82.4 while the previous day low was 77.6. The daily 38.2% Fib levels comes at 79.43, expected to provide support. Similarly, the daily 61.8% fib level is at 80.57, expected to provide resistance.

Western Texas Intermediate (WTI) remains negative during the North American session after hitting a daily low of $75.30 per barrel on rumors that the Organization of the Petroleum Exporting Countries (OPEC) was considering an increase in its oil production, as reported by the Wall Street Journal (WSJ). Another factor that weighed on crude oil demand was China’s Covid-19 outbreak, causing three deaths in the last week, augmenting speculations that China’s oil need will diminish. Therefore, WTI exchanges hand at $79.88 per barrel.

According to OPEC delegates cited by the WSJ, Saudi Arabia considered boosting crude oil output by 500,000 barrels ahead of the oil embargo imposed on Russian oil. Once the headline crossed wires, WTI slashed 3.6% of its value, collapsing towards its daily low of $75.30, before recovering some ground as the Saudi Energy Minister Prince Abdulaziz bin Salman, denying those affirmations

Prince Abdulaziz bin Salman said, “if there is a need to take further measures by reducing production to balance supply and demand, we always remain ready to intervene.”

Aside from this, China’s Covid-19 cases are increasing to levels last seen in April 2022, according to Goldman Sachs. Sentiment shifted sour on fears that Chinese authorities reimposing lockdowns could slow down the global economy, weighing, and denting crude oil’s demand.

Oil traders should be aware that OPEC and its allies (OPEC+)will meet on December 4 to lay the ground for January 2023, one day before the Russian oil embargo and G7 oil price cap begins.

WTI daily chart suggests that oil prices fell short of the 2022 YTD low of around $74.30 PB and are staging a comeback, nearly $80.00 PB. Notably, Monday’s price action formed a massive hammer candlestick, suggesting that WTI could rally in the near term, but firstly, buyers need to reclaim $80.00.

If that scenario plays out, WTI’s first resistance would be October’s 18 swing low-turned-resistance at $82.10, followed by the 50-day Exponential Moving Average (EMA) at $85.72 and the 100-day EMA at $89.51. On the flip side, WTI’s key support levels are the September 26 daily low at $76.28, the November 21 swing low at $75.30, and the YTD low of $74.30.

Technical Levels: Supports and Resistances

XTIUSD currently trading at 79.81 at the time of writing. Pair opened at 80.2 and is trading with a change of -0.49 % .

The pair remains strongly bearish on the daily time frame. It trades below the 20 SMA @ 86.55, 50 SMA 85.39, 100 SMA @ 89.12 and 200 SMA @ 97.29.

The previous day high was 82.4 while the previous day low was 77.6. The daily 38.2% Fib levels comes at 79.43, expected to provide support. Similarly, the daily 61.8% fib level is at 80.57, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 77.74, 75.27, 72.93
• Pivot resistance is noted at 82.54, 84.87, 87.34

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