WTI extends the recovery above $71 amid risk appetite, Iran delay

• WTI recapture $71, as the upside extends above the 200-DMA.
• Iran crude supply delay and easing Omicron fears lift the black gold.
• US API data and covid updates in focus for fresh trading impulse.

WTI (NYMEX futures) is sitting at six-day highs above $71, helped by the improving risk appetite amid easing fears over the impact of the new Omicron covid variant on the economic growth.

Global scientists have downplayed the effects of the new variant, as being mild. The risk-on market profile is boding well for the higher-yielding black gold.

Another factor supporting oil prices is the delay in crude oil supplies from Iran after talks to revive the Iran nuclear deal stalled on Friday. Talks will continue, officials from Iran and Europe said, with the negotiations expected to resume in the middle of next week in Vienna.

Also, recapturing the critical 200-Daily Moving Average (DMA) at $69.94 has provided the much-needed boost to WTI bulls.

The focus now shifts towards the US weekly crude stockpiles data due to be released by the American Petroleum Institute (API) later this Tuesday. However, the risk trends will continue to remain the main market motor.

WTI: Technical levels to consider