- Oil prices have been rising on the day, but technically trapped in a bar trend.
- Fundamentals are a weight and focus is on the downside.
Oil prices have been rising on the day, with WTI rising from a low of $53.71 to a high of $55.05, +2.31% on the day so far. Futures also rose on Tuesday, with U.S. prices up by more than 2%, on OPEC production cuts noise and expectations for a sizable weekly decline in U.S. crude supplies. October West Texas Intermediate oil CLV19, +2.52% climbed $1.29, or 2.4%, to settle at $54.93 a barrel on the New York Mercantile Exchange
The Organization of the Petroleum Exporting Countries' Joint Ministerial Monitoring Committee pegged July compliance with pledged output cuts at 159% which was the highest monthly compliance rate so far this year. Meanwhile, ahead of government supply data due tomorrow, a survey of analysts polled by S&P Global Platts showed that there are expectations for a 4.7 million-barrel decline in last week's U.S. crude stocks.
Geopolitical front
On the geopolitical front, besides the conflicting signals about the prospect thawing US-Sino tensions, the G-7 gathering saw some additional geopolitical drama develop with Iran with foreign minister Zarif making a showing. "While this prompted speculation that it could lead to a resolution in the conflict, which would see Iranian oil flow back into the market, the reiteration that limiting missile testing was off-limits promptly quelled those hopes," analysts at TD Securities argued.
WTI levels
Despite the comeback, the price is deteriorating in a broader view of the charts, pressured below the descending resistance line, pressured below the near term GMMA band now below the 20-daily moving average. With a focus on the downside and having taken out the trendline support, bears can now target a drop to the 52 handle and the 61.8% Fibo at 51.70 on the wide.
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. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD meets support near 1.0870 ahead of the Fed
Investors' cautious approach appears to be bolstering the US Dollar ahead of the Federal Reserve's interest rate decision scheduled for later this evening in Europe, while the EUR/USD has fallen back below 1.0900 after reaching its year-to-date highs on Tuesday.
Gold treads water around $3,030, looks at the Fed
Gold alternates gains with losses after reaching a record high near $3,050 earlier today. Traders, in the meantime, await the Federal Reserve's upcoming monetary policy decision and the release of the revised Summary of Economic Projections.
GBP/USD remains side lined near 1.2970 prior to the FOMC event
GBP/USD comes under pressure and slips back to the 1.2970 region following Tuesday's breakout of the key 1.3000 hurdle in a context of renewed strength in the Greenback ahead of the Fed's interest rate decision.
Federal Reserve set to keep interest rate unchanged amid US recession fears and Trump tariff concerns
Market participants widely anticipate the US central bank to leave policy settings unchanged for the second consecutive meeting, after cutting the interest rate by 25 basis points (bps) to the 4.25%-4.5% range in December.
Tariff wars are stories that usually end badly
In a 1933 article on national self-sufficiency1, British economist John Maynard Keynes advised “those who seek to disembarrass a country from its entanglements” to be “very slow and wary” and illustrated his point with the following image: “It should not be a matter of tearing up roots but of slowly training a plant to grow in a different direction”.
The Best brokers to trade EUR/USD
SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you're a beginner or an expert, find the right partner to navigate the dynamic Forex market.