WTI Price Analysis: Crude Oil sits at its lowest for the year (Pivot Orderbook analysis)

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The pair currently trades last at 72.51.

The previous day high was 75.25 while the previous day low was 71.23. The daily 38.2% Fib levels comes at 72.76, expected to provide resistance. Similarly, the daily 61.8% fib level is at 73.71, expected to provide resistance.

Europe and the G-7 started applying a price cap to oil prices, crude plunged.

EU Commission President Von der Leyen anticipated more sanctions ahead.

WTI trades near a weekly low of $71.11 a barrel, the lowest since December 2021.

The barrel of West Texas Intermediate Crude Oil plummeted this week and trades at levels that were last seen in December 2021. The black gold stands just above $70 a barrel, after peaking at $81.71 a barrel on Monday. The weekly drop came after the European Council, alongside the G-7, agreed on a price cap on Russian oil applicable as of December 5.

EU cap on Russian oil

“The price cap on Russian oil will limit price surges driven by extraordinary market conditions and drastically reduce the revenues Russia has earned from oil after it unleashed its illegal war of aggression against Ukraine. It will also serve to stabilise global energy prices while mitigating adverse consequences on energy supply to third countries,” reads the European Commission press release from December 3.

It is worth adding that, despite not directly referring to oil prices, European Commission President Ursula von der Leyen announced she will propose a ninth package of sanctions against Russia.

Technical Levels: Supports and Resistances

XTIUSD currently trading at 72.51 at the time of writing. Pair opened at 71.58 and is trading with a change of 1.3 % .

The pair remains strongly bearish on the daily time frame. It trades below the 20 SMA @ 79.61, 50 SMA 83.83, 100 SMA @ 86.23 and 200 SMA @ 96.15.

The previous day high was 75.25 while the previous day low was 71.23. The daily 38.2% Fib levels comes at 72.76, expected to provide resistance. Similarly, the daily 61.8% fib level is at 73.71, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 70.12, 68.67, 66.11
• Pivot resistance is noted at 74.14, 76.7, 78.16

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