Crude Oil extends gains, WTI breaks $80 as markets look to OPEC+

Crude Oil markets extend rebound, WTI gains over 5% from bottom.
Barrel traders look to OPEC+ to keep production down.
US Crude Oil supplies continue to fluster energy markets.

Joshua Gibson FXStreet

West Texas Intermediate (WTI) US Crude Oil rose on Tuesday as energy markets look to production cuts from the Organization of the Petroleum Exporting Countries (OPEC), and its extended network of non-member partner countries OPEC+, to maintain production cuts in order to try and tamp down global Crude Oil production in the face of disappointing demand.

OPEC begins an online-only meeting on Sunday, June 2, where the Crude Oil alliance is broadly expected to maintain voluntary production caps of 2.2 million bpd that have been in place since the third quarter of 2023. Global Crude Oil demand failed to rebound through 2024 to a degree that energy markets had anticipated, and global production risks running far ahead of how much Crude Oil that global economies can absorb.

US production continues to threaten a widening overhang on demand, and investors will be looking to this week’s Crude Oil supplies and stocks barrel counts from the American Petroleum Institute (API) and the Energy Information Administration (EIA). API and EIA barrel counts both printed higher than expected last week, adding to a supply buildup that has persisted through most of 2024. API Weekly Crude Oil Stocks for the week ended May 24 are slated for late Wednesday, with EIA Crude Oil Stocks Change for the same period expected later Thursday.

Economic Indicator

API Weekly Crude Oil Stock

API’s Weekly Statistical Bulletin (WSB) has reported total U.S. and regional data relating to refinery operations and the production of the four major petroleum products: motor gasoline, kerosene jet fuel, distillate (by sulfur content), and residual fuel oil. These products represent more than 85% of total petroleum industry.

Economic Indicator

EIA Crude Oil Stocks Change

The EIA Crude Oil stockpiles report is a weekly measure of the change in the number of barrels in stock of crude oil and its derivates, and it's released by the Energy Information Administration. This report tends to generate large price volatility, as oil prices impact on worldwide economies, affecting the most, commodity related currencies such as the Canadian dollar. Despite it has a limited impact among currencies, this report tends to affect the price of oil itself, and, therefore, had a more notorious impact on WTI crude futures.

WTI technical outlook

WTI US Crude Oil climbed over 5% from the last swing low into $76.00 per barrel, cracking $80.00 and climbing over $1.50 per barrel on Tuesday. WTI is testing into last week’s high bids and a near-term consolidation pattern is threatening to harden into the charts.

US Crude Oil is on pace to close in the green for a third straight trading day, and remains down from 2024’s peaks near $87.00. Despite recent downside, WTI remains up in 2024, climbing 12% from the year’s opening bids near $71.50.

WTI hourly chart

WTI daily chart

WTI US OIL

Overview
Today last price	79.99
Today Daily Change	1.47
Today Daily Change %	1.87
Today daily open	78.52

Trends
Daily SMA20	78.52
Daily SMA50	81.43
Daily SMA100	78.78
Daily SMA200	79.57

Levels
Previous Daily High	78.65
Previous Daily Low	77.56
Previous Weekly High	80.06
Previous Weekly Low	76.04
Previous Monthly High	87.12
Previous Monthly Low	80.62
Daily Fibonacci 38.2%	78.23
Daily Fibonacci 61.8%	77.98
Daily Pivot Point S1	77.84
Daily Pivot Point S2	77.16
Daily Pivot Point S3	76.76
Daily Pivot Point R1	78.93
Daily Pivot Point R2	79.33
Daily Pivot Point R3	80.01

Author

Joshua Gibson

FXStreet

Joshua joins the FXStreet team as an Economics and Finance double major from Vancouver Island University with twelve years' experience as an independent trader focusing on technical analysis.

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