WTI extends its upside around $77.50 on the hope for OPEC supply cuts

WTI prices trade in positive territory for the third consecutive day on Tuesday.
Saudi Arabia is planning to prolong oil production cuts of 1 million barrels per day through next year.
The concern about a slowing global economy outweighed the prospect of deepening supply cuts by OPEC+.
Oil traders will focus on the FOMC Meeting Minutes and US crude oil inventory data.

Lallalit Srijandorn FXStreet

Western Texas Intermediate (WTI), the US crude oil benchmark, is trading around $77.50 so far on Tuesday. WTI prices extend their upside amid the expectation that OPEC+ is likely to announce further supply cuts following a meeting early next week.

Saudi Arabia, the world's largest oil exporter, is planning to extend oil production cuts by 1 million barrels a day through next year, while OPEC+ considers additional cuts in response to declining prices and rising tensions over the Israel-Hamas conflict. If additional cuts are agreed upon, this could boost WTI prices in the near term.

On the other hand, the concern about a slowing global economy outweighed the prospect of deepening supply cuts by OPEC and its allies, such as Saudi Arabia and Russia. The Conference Board revealed on Monday that the US leading indicator for October fell 0.8% MoM from a 0.7% MoM drop in September. The report suggested that elevated inflation, high interest rates, and contracting consumer spending would push the US economy into a very short recession. This, in turn, might cap the upside of WTI prices.

Oil traders will monitor the Federal Open Market Committee (FOMC) Meeting Minutes on Tuesday, which might offer hints regarding future policy rate direction. Additionally, the US crude oil inventory data, including API Weekly Crude Oil Stock and EIA Crude Oil Stocks Change for the week ending November 17, will be released on Tuesday and Wednesday, respectively. These events could significantly impact the USD-denominated WTI price. Oil traders will take cues from the data and find trading opportunities around WTI prices.

WTI US OIL

Overview
Today last price	77.56
Today Daily Change	-0.07
Today Daily Change %	-0.09
Today daily open	77.63

Trends
Daily SMA20	79.51
Daily SMA50	84.32
Daily SMA100	82.04
Daily SMA200	77.97

Levels
Previous Daily High	78.46
Previous Daily Low	75.68
Previous Weekly High	79.66
Previous Weekly Low	72.39
Previous Monthly High	90.88
Previous Monthly Low	80.52
Daily Fibonacci 38.2%	77.4
Daily Fibonacci 61.8%	76.74
Daily Pivot Point S1	76.06
Daily Pivot Point S2	74.48
Daily Pivot Point S3	73.28
Daily Pivot Point R1	78.83
Daily Pivot Point R2	80.03
Daily Pivot Point R3	81.61

Author

Lallalit Srijandorn

FXStreet

Lallalit Srijandorn is a Parisian at heart. She has lived in France since 2019 and now becomes a digital entrepreneur based in Paris and Bangkok.

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