WTI keeps rising and hits $69.00 after OPEC agreement
|- Oil extends rally after OPEC agreed to increase output but more modestly than expectations.
- WTI up by 5% on Friday, at 4-week high, rebounds more than 8% from Monday’s low.
Crude oil prices are rising sharply, extending weekly gains. WTI Futures reached $69.00, the highest level since May 25 and is up almost $5 over the week.
The rally accelerated after the OPEC agreed to increase output by around 600K barrels a day. “The aim of the deal is to return total compliance to the current output agreement to 100%. Compliance has been well above 100% this year since some countries, notably Venezuela, have seen a drop in production. OPEC is set to hold the next biannual meeting on 3 December”, wrote analysts at Danske Bank.
The increase is in order to maintain the current production agreement that will last until the end of 2018 and explains why prices moved higher.
Regarding data, the Baker Hughes Oil Rig Count report showed an increase in the US to 863 from 862 and decline in gas from 194 to 188.
WTI Levels to watch
The current rally was capped by the $69.00 area that has become the immediate resistance followed by $69.50 (Apr 19 high) and $70.20 (May 14 low). On the flip side, supports might now be located at $68.60 (May 30 low), $67.20 and $66.50.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.