From the rising 10-EMA, US oil is gliding to the upside.
Investors are betting on the black gold due to restricted supplies.
On the daily chart, West Texas Intermediate oil is higher on Tuesday as buyers emerge, putting an end to the potential of a deeper and longer-term slump.
Investors anticipate tighter supply, although forecasts of a significant fall in global petroleum stockpiles gave support in the near term.
WTI is currently up 1.5 percent at $75.26, having climbed from a low of $73.70 to a high of $75.47.
According to the latest data and predictions, US crude stockpiles fell by 4.4 million barrels last week.
Industry and government weekly reports are expected today and Wednesday at 4:30 p.m. EDT, respectively.
Meanwhile, investors are concerned that an increase in COVID-19 Delta variant cases may cause demand forces to become troublesome.
The World Health Organization recently issued a warning that the Delta COVID-19 version was gaining popularity.
“The spread of Delta-variant infections across Asia is having a big impact on mobility in the region,” according to TD Securities analysts. “Congestion data for most cities tracked in the region shows a substantial reduction in mobility.”
“However, the risk to energy demand is minimized as pent-up travel demand rises outside of APAC, with air travel contributing to gains, resulting in epic demand growth in August.” This is reflected in the growing Brent-Dubai spreads, which indicate a less coherent world for energy demand.”
Meanwhile, OPEC+ policy meeting prospects remain bleak, with a meeting this week seeming unlikely, according to OPEC+ sources.
The price is developing a W-formation, which would be positive in the short term and predicted to surpass previous highs.
In the medium term, though, a breach of the recent lows will be extremely negative./n
