WTI down 4%, breaches $ 51 on talks of smaller-than-expected OPEC output cuts

Oil prices sold-off into talks of smaller-than-expected OPEC output cuts, risk-aversion.
All eyes on the outcome of OPEC+ Vienna meeting and EIA crude fuel stockpiles.

Dhwani Mehta FXStreet

WTI (oil futures on NYMEX) changed course and dropped more than $ 2 to hit fresh four-day lows just under the 51 handle, as the bears fought back control amid increased talks among the OPEC members of a smaller-than-expected output cut. The OPEC members are calling for a 1 million barrels per day (bpd) of output cuts as against the 1.3 million bpd cuts called on by Saudi Arabia earlier this week.

Moreover, the recent comments by the Saudi Arabian Energy Minister Al-Falih that no agreement is reached yet on the output cuts also added to the weight on the black gold. Further, the barrel of WTI also remains pressured by the risk-off trades on the European equity markets, as fresh US-China spat over the Chinese company, Huawei, CFO Meng dampens the overall market sentiment.

The updates from the OPEC meeting and its outcome on the output policy will dominate the oil-price movements in the day while the official US Government fuel stocks data published by the EIA could also offer some incentives to the oil traders.

WTI Technical Levels

WTI

Overview:
    Today Last Price: 51.37
    Today Daily change: -1.3e+2 pips
    Today Daily change %: -2.45%
    Today Daily Open: 52.66
Trends:
    Previous Daily SMA20: 53.48
    Previous Daily SMA50: 61.42
    Previous Daily SMA100: 65.63
    Previous Daily SMA200: 67.31
Levels:
    Previous Daily High: 53.19
    Previous Daily Low: 52.58
    Previous Weekly High: 52.13
    Previous Weekly Low: 49.64
    Previous Monthly High: 63.92
    Previous Monthly Low: 49.64
    Previous Daily Fibonacci 38.2%: 52.81
    Previous Daily Fibonacci 61.8%: 52.96
    Previous Daily Pivot Point S1: 52.43
    Previous Daily Pivot Point S2: 52.2
    Previous Daily Pivot Point S3: 51.82
    Previous Daily Pivot Point R1: 53.04
    Previous Daily Pivot Point R2: 53.42
    Previous Daily Pivot Point R3: 53.65

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

EUR/USD hits two-day highs near 1.1820

EUR/USD picks up pace and reaches two-day tops around 1.1820 at the end of the week. The pair’s move higher comes on the back of renewed weakness in the US Dollar amid growing talk that the Fed could deliver an interest rate cut as early as March. On the docket, the flash US Consumer Sentiment improves to 57.3 in February.

GBP/USD reclaims 1.3600 and above

GBP/USD reverses two straight days of losses, surpassing the key 1.3600 yardstick on Friday. Cable’s rebound comes as the Greenback slips away from two-week highs in response to some profit-taking mood and speculation of Fed rate cuts. In addition, hawkish comments from the BoE’s Pill are also collaborating with the quid’s improvement.

Gold climbs further, focus is back to 45,000

Gold regains upside traction and surpasses the $4,900 mark per troy ounce at the end of the week, shifting its attention to the critical $5,000 region. The move reflects a shift in risk sentiment, driving flows back towards traditional safe haven assets and supporting the yellow metal.

Crypto Today: Bitcoin, Ethereum, XRP rebound amid risk-off, $2.6 billion liquidation wave

Bitcoin edges up above $65,000 at the time of writing on Friday, as dust from the recent macro-triggered sell-off settles. The leading altcoin, Ethereum, hovers above $1,900, but resistance at $2,000 caps the upside. Meanwhile, Ripple has recorded the largest intraday jump among the three assets, up over 10% to $1.35.

Three scenarios for Japanese Yen ahead of snap election

The latest polls point to a dominant win for the ruling bloc at the upcoming Japanese snap election. The larger Sanae Takaichi’s mandate, the more investors fear faster implementation of tax cuts and spending plans.

XRP rally extends as modest ETF inflows support recovery

Ripple is accelerating its recovery, trading above $1.36 at the time of writing on Friday, as investors adjust their positions following a turbulent week in the broader crypto market. The remittance token is up over 21% from its intraday low of $1.12.