WTI darts to fresh highs, eyes $64 area despite OPEC+ output plans

WTI prices jump to test bear's commitments at daily resistance.
OPEC+ stick to output cut levels as India seen as a temporary risk.

Despite India's coronavirus surge and a subsequent decision from OPEC+ to stick to raising output, the price of WTI has rallied on Tuesday to score fresh 4-hour highs.

WTI has travelled from a low of $61.94 to a high of $63.27 on the day so far ahead of the latest weekly US oil inventory reports which analysts expect will show a rise in crude stocks. I

The industry data from the American Petroleum Institute is due at 4:30 p.m. EDT (2030 GMT), followed by the government's report on Wednesday.

Meanwhile, traders continue to bet on a strong recovery from the US, European and Chinese damnd which is fuelling the bid today as the market brushes aside the OPEC+ announcement that it will stick to plans to raise output slightly from May 1.

In other words, traders are buying the fact and the rationale is that OPEC+ likely does not see a lasting impact on demand from India's coronavirus crisis otherwise it would do more.

OPEC+ has also scrapped plans to hold a full ministerial meeting on Wednesday.

WTI technical analysis

As per the prior W-formation on the daily chart above, there is the scope of a downside test of the current W-formation's neckline.

However, there is the probability of an upside extension first as illustrated on the chart of the current resistance gives-out which guards a run to the 64 area and prior highs.

Share: Feed news

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.