Oil continues to see support from OPEC constraints, US rig declines

Oil prices softly back to open the day, but still well above key support levels.
Despite OPEC's cuts and US rig declines, a slowing global economy will constrain price growth.

Joshua Gibson FXStreet

Oil prices continue to remain bid above the key 51.00 level, testing near 51.40 to open the new trading week.

OPEC+'s production constraints are continuing to keep barrel costs bolstered, though further action could be required from the oil conglomerate if further upside is to be seen, as December's rise from multi-year lows sees WTI limited by a rejection from the 53.00 region.

Elsewhere, US oil drillers are reducing their rig counts, further helping to keep prices aloft after US oil producers shuttered four rigs in the week to January 11th, and the total US rig count now stands at 873, but TS Lombardi has noted that flagging oil demand on slowing global growth could see oil prices stabilize for the time being as the scope for upside moves remains limited.

WTI Technical Levels

WTI

Overview:
    Today Last Price: 51.8
    Today Daily change: -16 pips
    Today Daily change %: -0.308%
    Today Daily Open: 51.96
Trends:
    Previous Daily SMA20: 48.12
    Previous Daily SMA50: 51.5
    Previous Daily SMA100: 60.54
    Previous Daily SMA200: 64.59
Levels:
    Previous Daily High: 51.96
    Previous Daily Low: 51.96
    Previous Weekly High: 53.57
    Previous Weekly Low: 48.33
    Previous Monthly High: 54.68
    Previous Monthly Low: 42.45
    Previous Daily Fibonacci 38.2%: 51.96
    Previous Daily Fibonacci 61.8%: 51.96
    Previous Daily Pivot Point S1: 51.96
    Previous Daily Pivot Point S2: 51.96
    Previous Daily Pivot Point S3: 51.96
    Previous Daily Pivot Point R1: 51.96
    Previous Daily Pivot Point R2: 51.96
    Previous Daily Pivot Point R3: 51.96

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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