- The oil market is concerned about rising oil output to be potentially announced at the next OPEC meeting on 22-23 June in Vienna.
- The EIA saw a draw of -5.914 million barrels against -1.898 million expected but traders sold crude oil in anticipation of a rising output announcement on June 22.
Crude oil is currently trading at around 65.43 after an attempt to break above the 66.00 level.
Earlier in the day, the Energy Information Administration crude oil stockpile came at -5.914M versus -1.898M expected by analysts. Although the draw was potentially bullish for oil, investors disregarded the data and dumped the black gold after a failed bull breakout above the 66.00 figure.
In fact, the market is focused on the next OPEC/non-OPEC (including Russia) meeting which will take place on 22 and 23 June in Vienna.
It has been reported that Saudi Arabia is trying to convince other members to raise oil output. Russia is also favorable to a rise in production while Iran is opposed to the move as it is concerned of a price drop.
"The run-up to this OPEC meeting is fraught with uncertainty with Iran from the onset adopting a very entrenched opposition to any supply increase," said Harry Tchilinguirian, head of oil strategy at BNP Paribas.
Crude oi WTI 15-minute chart
Oil failed to break above the 66.00 level and bears are now potentially planning to break below the 65.00 figure.
Spot rate: 65.43
Relative change: -1.45%
High: 66.35
Low: 64.77
Trend: Bearish
Resistance 1: 66.00 figure
Resistance 2: 66.56 May 31 low
Resistance 3: 67.00 figure
Support 1: 65.00 figure
Support 2: 64.26 Tuesday’s low
Support 3: 63.40 current weekly low
Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.
Recommended content
Editors’ Picks
EUR/USD clings to daily gains above 1.0650
EUR/USD gained traction and turned positive on the day above 1.0650. The improvement seen in risk mood following the earlier flight to safety weighs on the US Dollar ahead of the weekend and helps the pair push higher.
GBP/USD recovers toward 1.2450 after UK Retail Sales data
GBP/USD reversed its direction and advanced to the 1.2450 area after touching a fresh multi-month low below 1.2400 in the Asian session. The positive shift seen in risk mood on easing fears over a deepening Iran-Israel conflict supports the pair.
Gold holds steady at around $2,380 following earlier spike
Gold stabilized near $2,380 after spiking above $2,400 with the immediate reaction to reports of Israel striking Iran. Meanwhile, the pullback seen in the US Treasury bond yields helps XAU/USD hold its ground.
Bitcoin Weekly Forecast: BTC post-halving rally could be partially priced in Premium
Bitcoin price shows no signs of directional bias while it holds above $60,000. The fourth BTC halving is partially priced in, according to Deutsche Bank’s research.
Week ahead – US GDP and BoJ decision on top of next week’s agenda
US GDP, core PCE and PMIs the next tests for the Dollar. Investors await BoJ for guidance about next rate hike. EU and UK PMIs, as well as Australian CPIs also on tap.