Oil clipping closer towards multi-year highs after OPEC axes increased production idea
|- Crude prices are on the rise as US sanctions on Iran threaten market stability.
- OPEC torpedoed the idea of raising cap limits, further propping up prices.
Crude prices are continuing their latest march up the charts, with WTI bumping back over the 72.00 figure after OPEC confirmed it won't be looking at bringing prices down unless absolutely necessary.
US sanctions hanging over Iran are set to come into effect in November, and the US is seeking to actively shut Iran out of global oil markets, which has been building a floor underneath barrel costs at an increasing rate, and US President Donald Trump's only solution to rising costs was to direct laments at OPEC over Twitter last week, demanding the oil conglomerate "do something" about rising prices.
OPEC's last meeting, which took place over the weekend, saw little to no discussion take place about the prospect of lifting production caps for the time being; overall, OPEC is currently not hitting the production caps that are already in place, and lifting limits will accomplish nothing in the short-term. Although the majority of market watchers are concerned about the supply gap that could be left in place after the US sanctions on Iran come into effect, OPEC is looking even further out, and is concerned about a possible supply overload that could once again crush demand in 2019, and the crude cartel is content to sit on its laurels for the time being and risk rising crude costs for the time being in an effort to stabilize prices looking further out.
WTI levels to watch
WTI crude barrels are trading into 72.25 for Tuesday's early action after catching some lift on rising supply concerns, clipping into a near-term high of 72.70, with support from a rising trendline on H4 candles and the last swing low of 68.60, with 2018's peak at 75.25 coming into view.
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