WTI extends its upside below $91.00 amid a tight supply outlook

WTI gains momentum around $90.90, the highest level since November 2022.
Oil supply cuts by Saudi Arabia and Russia boost the WTI prices.
Saudi Arabia’s Energy Minister said OPEC+ is working to keep oil markets stable amid the uncertainty on China’s demand.

Lallalit Srijandorn FXStreet

Western Texas Intermediate (WTI), the US crude oil benchmark, is trading around the $90.90 mark so far on Tuesday. WTI prices gain momentum due to a tight supply outlook by Saudi Arabia and Russia. However, a fear of an economic slowdown in China might limit the upside in WTI prices.

The uptick in WTI prices in recent weeks is bolstered by oil supply cuts by Saudi Arabia and Russia. That said, the world's two largest oil exporters announced prolonged oil output curbs until the end of 2023. Through the end of 2023, Saudi oil output will be closer to 1.3 million barrels per day. Additionally, the International Energy Agency (IEA) warned earlier this week that oil market deficits would worsen in the fourth quarter with the summer-announced oil production cuts by Saudi Arabia and Russia exacerbating the situation.

On Monday, Saudi Arabia’s Energy Minister, Prince Abdulaziz bin Salman stated that the Organization of Petroleum Export Countries and its allies (OPEC+) are working to keep oil markets stable and improve global energy security, without targeting any specific price level for crude. However, he added that uncertainty on China’s demand is one of the key drivers of global crude prices.

Looking ahead, oil traders will closely monitor the Federal Reserve (Fed) Interest Rate Decision on Wednesday. The market expects the Federal Reserve (Fed) to maintain interest rates unchanged at its policy meeting on Wednesday while keeping one more rate hike on the table. Also, API and IEA will release Crude Oil Stock data for the week ending September 15. On Friday, the US preliminary S&P Global PMI data for September will be due. These events could significantly impact the USD-denominated WTI price. Oil traders will take cues from the data and find trading opportunities around the WTI prices.

WTI US OIL

Overview
Today last price	91
Today Daily Change	0.07
Today Daily Change %	0.08
Today daily open	90.93

Trends
Daily SMA20	84.73
Daily SMA50	81.48
Daily SMA100	76.28
Daily SMA200	76.66

Levels
Previous Daily High	91.3
Previous Daily Low	89.85
Previous Weekly High	90.56
Previous Weekly Low	86.23
Previous Monthly High	84.32
Previous Monthly Low	77.53
Daily Fibonacci 38.2%	90.75
Daily Fibonacci 61.8%	90.4
Daily Pivot Point S1	90.09
Daily Pivot Point S2	89.25
Daily Pivot Point S3	88.65
Daily Pivot Point R1	91.53
Daily Pivot Point R2	92.13
Daily Pivot Point R3	92.97

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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