West Texas Intermediate (WTI) crude oil tumbles as investors get the jitters on COVID-19 Cases in India

May 3, 2021 - 2 weeks ago
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Surging COVID-19 cases in countries such as India dampen the bullish sentiment on Friday.

The West Texas Intermediate (WTI), the benchmark for New York-traded crude oil prices, staged a course correction and eased some of the gains witnessed last week.

India, the third-largest oil importer globally, continues to fight its second wave of COVID-19 cases.

The daily number of COVID-19 cases passed the 400,000-mark on May 1 before inching back down to 392,488 the next day, according to the country’s Ministry of Health and Family Welfare.

The record numbers led the Confederation of Indian Industry to urge authorities to curtail economic activity.

Drillers added two rigs, bringing the nation’s count to 440, according to U.S. oil-field services company Baker Hughes reported Friday.

In its weekly count of operating rigs, Baker Hughes noted the U.S. oil rig tally declined by one to 342.

The U.S. gas rig total grew by two to 96, and the miscellaneous rig count increased by one to two, the service company added.

Since this time last year, when 408 rigs were operating, the U.S. has added 32 rigs, Baker Hughes noted.

From a technical perspective, the daily technical set-up of the Relative Strength Index (RSI) 3-daily ‘lookback’ indicator has buckled as it pressures the 50-midway point, while the Moving Average Convergence Divergence (MACD) positive signal holds.

Since the failed challenge of the resistance at $64.35-55 now turns the attention to the support located at $61.80-$62.10 (trendline). Reassess from there.

A close above $64.80 should give the bullish call to $67.00-50.

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