WTI prices appreciate for the second consecutive day to reach an $87.10 high. (Pivot Orderbook analysis)

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• WTI prices appreciate for the second consecutive day to reach an $87.10 high.
• Sanctions on Russian oil and lower reserves are buoying petrol prices.
• China is considering relaxing COVID-19 lockdowns.

The pair currently trades last at 84.83.

The previous day high was 84.92 while the previous day low was 81.65. The daily 38.2% Fib levels comes at 83.67, expected to provide support. Similarly, the daily 61.8% fib level is at 82.9, expected to provide support.

WTI futures are trading higher for the second consecutive day on Thursday, to shrug off the last two weeks’ negative trend. The US benchmark oil has extended its recovery from Tuesday’s lows at $82.15 to session highs at $87.10 before retreating to the $86.00 area.

A European ban on Russian crude oil that will come into effect in December, amid a new set of sanctions for the Ukrainian war, is pushing prices higher as the eurozone leaders struggle to find alternative providers ahead of the winter.

US official data has revealed that the country’s Strategic Petroleum reserves fell last week to their lowest level since 1984. These figures have offset the announcement of US President Joe Biden’s plan to sell 15 million barrels from the strategic reserves to tame crude prices.

Beyond that, the EIA reported a 1.725M decline in crude oil inventories in the week of October 14, against market expectations of a 1.38M increase, which has contributed to push prices higher.

Besides, news that China, the world’s larger importer, is considering shortening the COVID-19 quarantine for visitors has eased market concerns about a decline in demand thus adding bullish pressure on prices.

Technical Levels: Supports and Resistances

XTIUSD currently trading at 84.83 at the time of writing. Pair opened at 84.65 and is trading with a change of 0.21 % .

The pair is trading above its 20 Daily moving average @ 84.17, below its 50 Daily moving average @ 86.69 , below its 100 Daily moving average @ 94.83 and below its 200 Daily moving average @ 97.27

The previous day high was 84.92 while the previous day low was 81.65. The daily 38.2% Fib levels comes at 83.67, expected to provide support. Similarly, the daily 61.8% fib level is at 82.9, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 82.56, 80.47, 79.29
• Pivot resistance is noted at 85.83, 87.01, 89.09

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