- Trumps‘s tweet criticizing OPEC cuts sends crude oil lower but then black gold recovers losses quickly.
- Longer-term fundamentals for oil are still well in place for oil.
Crude oil WTI is trading at around $68.38 per barrel virtually unchanged as the commodity traded mainly sideways on the last day of the week but still at levels not seen since late 2014.
Earlier in the day, Trump tweeted that he was not happy with current oil prices. “Looks like OPEC is at it again. With record amounts of Oil all over the place, including the fully loaded ships at sea, Oil prices are artificially Very High! No good and will not be accepted!” says Trump by Tweeter. Oil ticked lower on the tweet but then prices quickly recovered.
The OPEC and Russia decided to cut production in January 2017 in order to support the prices of oil.
Oil prices are higher for many reasons: diplomatic tensions with Russia, the Iranian deal that needs to be renewed on May 12, tightening supply led by OPEC and Russia, a global demand for oil which is steady and a decreasing Venezuelan oil production.
Khalid al-Falih, Saudi oil minister, said that OPEC has no intention to decrease the cuts for the time being and that it would be premature to discuss it at the next meeting in June. He added that the global economy could put up with higher prices and that oil demand would persist regardless of higher prices.
Crude oil WTI: levels to watch
The trend is bullish. Support is seen at 67.76 swing high and at 67.00 figure, while resistance is seen at 68.91 supply level and 69.56 high of the year.
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