WTI extends recovery above $69, gains over 2% on the day

Russia's Novak suggests an extended supply cut deal.
EIA revises down U.S. crude oil output expectations.
Weekly API report will be released later in the session.

Eren Sengezer FXStreet

Crude oil prices gained traction on Tuesday and finally staged a decisive recovery with the barrel of West Texas Intermediate breaking above the $69 mark. At the moment, the barrel of WTI is trading at $69.30, adding 2.65% on the day.

Earlier today, according to the Russian news agency, TASS, Russia’s Energy Minister Alexander Novak said that the OPEC and its allies could sign a new long-term cooperation deal when they meet in early December and added that output quotes could remain in place after 2018. Furthermore, Iranian oil exports continued to decline before the U.S. sanctions go into effect in November to provide an additional boost to oil.

On the other hand, in its latest report, the U.S. Energy Information Administration announced that it forecasted the U.S. crude oil production to rise by 840 barrels per day to 11.5 million bpd in 2019 compared to the previous estimate of a daily increase of 1.02 million barrels.

Later in the day, the API is going to publish its weekly crude oil stock report, which showed a draw of 1.2 million barrels in the previous week.

Technical levels to consider

The next critical resistance for the WTI aligns at $70 (psychological level) ahead of $70.50 (Aug. 30 high) and $71.35 (Sep. 4 high). On the downside, supports could be seen at $68.90 (50-DMA), $68 (psychological level/20-DMA) and $66.85 (Sep. 7 low).

Author

Eren Sengezer

FXStreet

As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.

EUR/USD trims gains, back below 1.1800

EUR/USD now loses some upside momentum, returning to the area below the 1.1800 support as the Greenback manages to regain some composure following the SCOTUS-led pullback earlier in the session.

GBP/USD off highs, recedes to the sub-1.3500 area

Following earlier highs north of 1.3500 the figure, GBP/USD now faces some renewed downside pressure, revisiting the 1.3490 zone as the US Dollar manages to regain some upside impulse in the latter part of the NA session on Friday.

Gold climbs to weekly tops, approaches $5,100/oz

Gold keeps the bid tone well in place at the end of the week, now hitting fresh weekly highs and retargeting the key $5,100 mark per troy ounce. The move higher in the yellow metal comes in response to ongoing geopolitical tensions in the Middle East and modest losses in the US Dollar.