WTI drops 1.5% even as OPEC+ considers delaying output boost

WTI drops as coronavirus resurgence in the US revives lockdown fears.
OPEC+ is reportedly considering a three to six-month delay to a scheduled output boost.

Omkar Godbole FXStreet Contributor

The US oil prices fell during Friday's Asian trading hours, extending a two-day losing trend as concerns over rising coronavirus infection overshadowed reports of major producers mulling a delay in production ramp-up.

The West Texas Intermediate (WTI) crude, a North American oil benchmark, declined by 1.5% to levels below $40.50, having retreated from $43.06 to $41.12 in the preceding two days.

Risk sentiment weakened as the new coronavirus infections in the US hit record highs for the second straight day on Wednesday. According to The New York Times, at least 142,755 new COVID-19 cases were reported in the US on Wednesday.

Investors feared that authorities would respond to the surge in coronavirus numbers by reimposing the economically-painful lockdown restrictions, causing an April-like glut in the oil market.

As such, the news of OPEC+, a group of major producers led by Russia and Saudi Arabia, planning to push out oil output boost well into the second quarter of 2021, failed to put a bid under the oil.

The output boost was set to take effect on Jan. 1. OPEC+ will meet on Nov. 30 and Dec. 1 to decide and finalize the oil output strategy. Currently, the group is cutting about 7.7 million barrels per day.

Technical levels

WTI

Overview
Today last price	40.32
Today Daily Change	-0.67
Today Daily Change %	-1.63
Today daily open	41.23

Trends
Daily SMA20	39.34
Daily SMA50	39.5
Daily SMA100	40.51
Daily SMA200	37.28

Levels
Previous Daily High	42.41
Previous Daily Low	41.12
Previous Weekly High	39.55
Previous Weekly Low	33.85
Previous Monthly High	41.93
Previous Monthly Low	35.08
Daily Fibonacci 38.2%	41.61
Daily Fibonacci 61.8%	41.92
Daily Pivot Point S1	40.76
Daily Pivot Point S2	40.3
Daily Pivot Point S3	39.47
Daily Pivot Point R1	42.05
Daily Pivot Point R2	42.88
Daily Pivot Point R3	43.34

Author

Omkar Godbole

FXStreet Contributor

Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.

AUD/USD keeps range near mid-0.7100s as USD bulls await US CPI

AUD/USD steadies near mid-0.7100s in the Asian session on Friday, stalling the previous day's sharp decline to an over one-week low. The August PPI report reaffirmed Fed rate-hike bets and boosted the US Dollar on Thursday, which weighed heavily on the pair. However, hawkish RBA expectations limited losses for the Aussie as USD bulls now await the release of the US consumer inflation figures before placing fresh bets.

USD/JPY holds lower ground toward 154.00; looks to US CPI

USD/JPY holds lower ground toward 154.00 in the Asian session on Friday after hot Japanese PPI data bolster a more hawkish BoJ repricing and provide fresh impetus to the Japanese Yen. However, the downside appears capped as the US Dollar preserves overnight gains ahead of the latest US consumer inflation data.

Gold moves away from one-week low, climbs above $4,450 as USD edges lower ahead of CPI

Gold builds on its modest intraday recovery from the $4,300 neighborhood, or a one-and-a-half-week low, touched earlier this Friday, and climbs above $4,350 heading into the European session. The upside potential, however, seems limited as traders opt to wait for the release of US consumer inflation figures before placing directional bets.

Cardano approaches critical support as correction risks grow

Cardano (ADA) recovers slightly, trading at $0.206 at the time of writing on Friday, inches above the critical support zone after losing more than 6% so far this week. Weakening derivatives data and fading bullish momentum suggest a bearish near-term outlook, with a decisive close below the support zone potentially triggering a deeper correction for ADA.

US core CPI data set to ease in August as markets reprice Fed September rate decision

The US Bureau of Labor Statistics will publish the August Consumer Price Index data on Friday. The report is expected to show a small decline in annual core inflation. Any divergence from analysts’ estimates could influence the Federal Reserve’s policy outlook and impact the US Dollar’s valuation.

Venezuela’s 65-billion-barrel Oil deal could reshape America’s inflation fight

The United States (US) has secured unprecedented access to part of Venezuela’s vast Oil reserves. The timing is particularly significant as the war with Iran is disrupting Middle Eastern supplies, keeping energy prices elevated and reviving concerns about inflation.