WTI treads water around $74.50 amid OPEC+ impasse, mixed sentiment

• WTI stalls its recovery from three-week lows amid a cautious start to the week.
• Upbeat EIA stocks data, risk-on mood rescue the oil bulls last week.
• Covid concerns remain a risk, as Delta variant flares up globally.

WTI (futures on Nymex) has turned south towards the midpoint of the $74 level after the recovery ran into offers just shy of the $75 mark.

The mixed market mood starting out a fresh week and a pause in the US dollar’s sell-off seemingly cap the recovery mode in the US. Additionally, escalating covid cases in the Asia-Pac region and its impact on the global growth also weighs on the higher-yielding oil.

 At the time of writing, the black gold is trading at $74.56, almost unchanged on the day, having ended the week in the red.

Last’s week solid rebound in WTI price from three-week lows of $70.76 could be associated with a bigger-than-expected draw in the US weekly crude inventories, as reported by the Energy Information Administration (EIA) on Thursday.

Meanwhile, a stand-off amongst the OPEC and its allies (OPEC+) on a potential increase in oil output also supports the uptrend in prices. The United Arab Emirates (UAE) rejected a proposed eight-month extension to OPEC+ output curbs, which led to a fallout in the talks, despite a three-day meeting.

Looking ahead, the US consumer data, weekly crude inventories and covid updates will be closely eyed for fresh trading opportunities.

WTI technical levels to consider