WTI: Concerns of deeper OPEC+ output cut, upbeat API data help extend latest recovery


  • WTI stretches the previous two days’ pullback.
  • Rising odds of supply outage dominate over concerns of demand depletion due to trade war.
  • Today’s EIA stockpiles will be closely observed ahead of OPEC+ meeting.

WTI remains positive while taking rounds to $56.50 during the early Asian trading session on Wednesday. The energy benchmark follows the two-day-old recovery amid rising concerns of deeper production cuts by the global oil suppliers and upbeat private inventory data.

The American Petroleum Institute’s (API) Weekly Crude Oil Stock survey for the period ended on November 29 showed that the United States (US) oil inventories dropped -3.72 million barrels versus the previous readouts of 3.64 million barrels.

OPEC+ in the spotlight…

While the depletion of supply extended the black gold’s previous recovery, comments signaling the need for further global production cuts from Iraq’s Oil Minister Thamir Ghadhban offer an additional boost to the run-up. The diplomat said that the members of the OPEC+ group, Organization of the Petroleum Exporting Countries (OPEC) and their allies including Russia, prefer wider output cuts. Earlier, Saudi Arabia was also pushing for a broad product cut accord.

Oil markets seem to pay a little heed to the US-China trade worries. Herein, the US continues to dim the prospects of any phase-one deal with China in 2019 while China stands tough and announces sanctions over the Hong Kong Act.

Although OPEC+ meeting on December 05/06 becomes the key event for the oil traders, today’s official oil inventory data from the Energy Information Administration (EIA) will offer intermediate moves. The stockpile report is expected to follow the footsteps of private API numbers while flashing -1.798M figure versus +1.572M prior.

Technical Analysis

Unless bouncing back beyond 200-day Simple Moving Average (SMA) level of $57.65, prices stay vulnerable to revisit November month low surrounding $54.10.

additional important levels

Overview
Today last price 56.48
Today Daily Change 0.43
Today Daily Change % 0.77%
Today daily open 56.05
 
Trends
Daily SMA20 57.24
Daily SMA50 55.67
Daily SMA100 55.84
Daily SMA200 57.64
 
Levels
Previous Daily High 56.73
Previous Daily Low 55.59
Previous Weekly High 58.72
Previous Weekly Low 55.07
Previous Monthly High 58.76
Previous Monthly Low 54.12
Daily Fibonacci 38.2% 56.29
Daily Fibonacci 61.8% 56.03
Daily Pivot Point S1 55.52
Daily Pivot Point S2 54.98
Daily Pivot Point S3 54.38
Daily Pivot Point R1 56.66
Daily Pivot Point R2 57.26
Daily Pivot Point R3 57.8

 

 

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.

Feed news

FXStreet Trading Signals now available!

Access to real-time signals, community and guidance now!

Latest Forex News


Latest Forex News

Editors’ Picks

EUR/USD extends losses toward 1.1250 amid coronavirus concerns

EUR/USD is trading closer to 1.1250 as concerns about US coronavirus cases are growing. Eurozone finance ministers are meeting ahead of next week's summit.  US PPI and updated COVID-19 statistics are awaited.

EUR/USD News

GBP/USD pressured under 1.26 amid risk-off mood, Brexit uncertainty

GBP/USD is trading below 1.26, off the highs. Rising US coronavirus cases are pushing markets lower and the safe-haven dollar higher. Concerns about Brexit and the UK refusal to participate in the EU coronavirus vaccine scheme are weighing on sterling. 

GBP/USD News

Gold refreshes session tops, moves back above $1800 mark

The prevalent risk-off mood assisted gold to reverse an early dip to the $1796 region. A modest pickup in the USD demand might cap any further gains for the commodity. Investors also worried about the possibility of further escalation of Sino-US tensions.

Gold News

Canada Net Change in Employment June Preview: June is looking better and better

Job gains expected to more than double in June. Unemployment rate to drop to 12% from 13.7 in May. Ivey PMI was twice its forecast in June, highest since Nov 2019. USD/CAD would benefit from better June job figures.

Read more

WTI drops to fresh weekly lows below $39 amid virus risks, IEA forecast

WTI (August futures on Nymex) extends the steep declines seen on Thursday to drops over 1.50% in the European session this Friday. The oil bears breach the 39 level to hit the lowest levels in eight days at 38.76.

Oil News

Forex MAJORS

Cryptocurrencies

Signatures