WTI sees a slight recovery on Tuesday, while supply constraints remain a concern

• WTI seeks to recover $88.50, while energies experience a slight recovery.
• Crude oil plunged last week after risk-off flows in markets caused investors to take refuge in the dollar.
• The Dollar Index reached its highest level in ten months and the barrel of crude oil registered its lowest level in three weeks.

West Texas Intermediary Crude Oil Barrel Prices (WTI) They staged a slight recovery to reach the $88.50 level, following a one-week drop to three-week lows, as risk aversion in the market caused market participants to flee to safe havens.

US crude oil prices hit 10-month highs as global oil production is poised to undersupply global demand.

Previous reports about the resumption of an Iraqi oil pipeline were splashed with cold water after Turkey stated that talks on resuming construction are still ongoing. A major Iraqi oil pipeline through Turkey remains out of commission after almost six months of work interruption.

Energy traders will be watching the API’s weekly update on US crude oil stockpiles for the week of September 29, which will be released late in the session on Tuesday. US crude oil reserves fell by 1,586 million barrels, while global production decreases crude oil demand by almost 2 million bpd.

WTI technical levels

WTI crude oil barrel prices are looking for a recovery after being kicked down almost 7.5% from the last peak to just a few cents below the $94.00 zone.

Last week’s high represents a ten-month high for WTI, and US crude oil has closed higher for four consecutive weeks of trading.

Technical support on the daily candlesticks comes from the 34-day exponential moving average, just north of $86.00, and medium-term bullish momentum for WTI prices sees bids well above the SMA of 200 days, which is currently turning bullish at $78.00.

WTI daily chart

WTI technical levels