WTI trims losses, rises back to $72.50 from three-week lows

• WTI recovers after a sharp decline from the highest level since 2014.
• Market participants await FOMC minutes also API weekly data.

WTI (futures on Nymex) bottomed after the beginning of the American session at $70.54, the lowest since June 18. It then rebounded, rising above $72.00, trimming losses. At the time of writing, the WTI drops 2.05% to 72.20$.

The move higher took place amid a recovery in equity prices in Wall Street and also after the rally of the US dollar across the board eased. Market participants await the FOMC minutes from the June meeting. The document could trigger volatility in the currency market and also on energy assets.

The jump to the highest since 2014 followed the lack of agreement in the OPEC+. Later, some profit-taking, a stronger US dollar, and concerns about the new COVID variant, delta pushed crude oil prices to the downside.

Later on Wednesday, after the FOMC minutes, the American Petroleum Institute (API) will release its weekly crude stockpiles report.

WTI technical levels

WTI is under the 20-day moving average, for the first time since mid-May. A close around current level would favor more losses ahead. Strong support areas are seen at $69.50 and below at $67.00. A firm rebound above $74.00 would alleviate the bearish pressure, leaving the door open to fresh highs.

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