WTI crude futures rose more than 3.5% to $73.60 per barrel, recovering sharply from their daily lows of around $70 on supply concerns. The Keystone Pipeline which transfers oil from Canada to the US remains shut, while the Kremlin threatens a production cut. At the same time news that Beijing may loosen its COVID-19 restrictions at a quicker pace than expected bolstered the fuel demand outlook. Nevertheless despite upbeat sentiment buyers struggle to break above local resistance at $73.60, which is marked with previous price reactions and as long as price sits below, retest of recent lows cannot be ruled out. On the other hand, should break higher occur, then next resistance to watch lies at $76.20 and coincides with 78.6% Fibonacci retracement.
OIL.WTI, H4 interval. Source: xStation5
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