WTI extends its losing streak as OPEC+ communicates ease in Oil production cuts

The Oil price fell to $72.50 as OPEC+ plans to shore up the market.
Weak US factory PMI raise concerns over the Oil demand outlook.
Investors await the US NFP data for fresh guidance.

Sagar Dua FXStreet

West Texas Intermediate (WTI), futures on NYMEX, fall further to $72.50 in Tuesday’s European session. The Oil price extends its losing streak for the third trading session on Tuesday as the latest supply policy from the OPEC+ meeting on June 2 indicated that the production cuts could be relaxed to some extent later this year.

OPEC members didn’t not full extend the current oil production cut policy. The agency said voluntary cuts of 2.2 million barrels per day (bpd), handled by eight members, out of overall output cut of 5.86 million barrels per day (bpd) will expire by June 2024, unlike the remaining stock cut that will last till September 2024.

Meanwhile, weak United States (US) ISM Manufacturing PMI has also raised concerns over the Oil demand outlook. The US Manufacturing PMI report showed that factory activity contracts for the second straight month in May.

The PMI data was recorded at 48.7, lower than the consensus of 49.8 and the prior reading of 49.2. Apart from that, New Orders Index that reflects the demand outlook fell to 45.4 from the former reading of 49.1, suggesting sluggishness in the economy in the midst of the second quarter due to the Federal Reserve (Fed) maintaining a restrictive monetary policy framework.

Going forward, investors will focus on the US Nonfarm Payrolls (NFP) for May, which will be published on Friday. The US NFP will provide cues about when the Fed will start reducing interest rates. Currently, financial markets expect that the Fed will choose the September meeting as the earliest point to return to policy normalization.

WTI US OIL

Overview
Today last price	72.61
Today Daily Change	-1.31
Today Daily Change %	-1.77
Today daily open	73.92

Trends
Daily SMA20	78.15
Daily SMA50	81.03
Daily SMA100	79.06
Daily SMA200	79.53

Levels
Previous Daily High	77.36
Previous Daily Low	73.92
Previous Weekly High	80.41
Previous Weekly Low	76.52
Previous Monthly High	81.25
Previous Monthly Low	76.04
Daily Fibonacci 38.2%	75.23
Daily Fibonacci 61.8%	76.04
Daily Pivot Point S1	72.77
Daily Pivot Point S2	71.62
Daily Pivot Point S3	69.33
Daily Pivot Point R1	76.21
Daily Pivot Point R2	78.51
Daily Pivot Point R3	79.66

Author

Sagar Dua

FXStreet

Sagar Dua is associated with the financial markets from his college days. Along with pursuing post-graduation in Commerce in 2014, he started his markets training with chart analysis.

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