WTI outlook: Oil prices tumble on Monday as OPEC+ increases production again
WTI
WTI Oil opened with $2 gap lower on Monday and hit the lowest since Apr 9, after OPEC+ over the weekend announced decision to further increase oil production by 411K bpd from June.
This marks the third consecutive output increase which totaled 960K bpd, including increases in April May and June.
The decision negatively impacted oil prices as markets remain very concerned about oil demand outlook, darkened by growing fears about further weakening of the global economy which already felt strong drag from US trade tariffs.
The pressure on oil prices could increase on concerns that further output increases would fully offset cartel’s earlier decision of voluntary production cuts and deepen threats of disbalance between production and demand.
Fresh weakness neared key support at $55.12 (Apr 9 low, the lowest since Feb 2021) but face strong headwinds at this zone that may keep the price in consolidation before final push lower.
Immediate bears are expected to remain intact as long as today’s gap is unfilled, though extended upticks (which cannot be ruled out) should be ideally capped under $60.00 (50% retracement of $64.70/$55.14 bear-leg / psychological reinforced by daily Tenkan-sen) to keep near term bias with bears.
Daily studies are bearish (strong negative momentum / daily Tenkan / Kijun-sen in bearish setup and diverging) and add to negative near term outlook.
Res: 57.11; 57.66; 58.79; 60.00.
Sup: 55.12; 54.77; 52.43; 51.59.
Interested in WTI technicals? Check out the key levels
Author
Slobodan Drvenica
Windsor Brokers
Industry veteran with over 22 years’ experience, Slobodan Drvenica joined Windsor Brokers in 1995 when he was an active trader for more than 10 years, managing the trading desk and own account departments.
