WTI oil consolidates at seven-year highs above $80.00

WTI futures capped at $81.61, remains steady above $80.00.
OPEC forecasts, US stocks weigh on oil prices.
US Oil prices consolidate between $79.45 and $81.60.

Front-month WTI futures have been rejected at $81.61 session high earlier today, and prices have retreated moderately during Thursday’s US trading session. Oil prices, however, remain fairly steady, consolidating at long-term highs, with downside attempts contained above the psychological $80 level.  

OPEC, higher US stocks weigh on oil prices

The rally of the West Texas Intermediate was paused on Wednesday, after climbing above $80. The OPEC+ released a downward revision of its oil demand growth estimations for 2021, which might have eased upside pressure on crude prices.

Furthermore, The US Energy Information Administration (EIA) has reported on Thursday a much higher than expected increment on oil stocks, weighing prices further. Commercial crude oil inventories increased by 6 million barrels in the week of October 8 in the US, according to the EIA, well beyond the 0.7 million build-up anticipated by the market.

WTI prices remain capped below $81.60

Crude prices have remained trading rangebound over the last two days, trapped between $79.40 and $81.60 after peaking above $82.00 last Monday. On the upside, WTI futures need to confirm above the mentioned $81.60 (Oct.12 high) and $82.15 (Oct, 11 high) to set its focus on the $90.00 area (78.6% Fibonacci retracement of the 2014-2016 decline).

On the downside, below the $80.00 (psychological level and $79.45 (Oct. 12, 13 lows) the WTI might lose its upside momentum and extend its reversal towards $78.65 (Oct. 8, 10 lows).

Technical levels to watch