- WTI is falling nearly 4% after surging to multi-year highs.
- Investors are worried about producers opting out of output cuts.
- Focus shifts to weekly crude oil stock data from the US.
Crude oil prices rose sharply at the start of the week after OPEC+ producers failed to reach an agreement on the group's oil output strategy and called off the meeting. The barrel of West Texas Intermediate (WTI) rose more than 1% on Monday and preserved its bullish momentum to reach its highest level since November 2014 at $76.95.
Supply concerns weigh on oil prices
However, with American investors returning from a long weekend, oil came under heavy selling pressure and WTI dropped all the way to $72.92 in the second half of the day before going into consolidation. At the moment, WTI is down 3.5% on a daily basis at $73.50 and remains on track to post its largest one-day percentage loss since falling more than 4% in early April.
Investors seem to be concerned about the United Arab Emirates (UAE) unilaterally ramping up its oil production and other producers doing the same following Monday's clash with Saudi Arabia. The UAE stood against an extension of production curbs until the end of 2022 from the current deadline of April 2022.
Later in the week, the American Petroleum Institute (API) and the US Energy Information Administration (EIA) will release the weekly crude oil stock data.
Technical levels to watch for
|Today last price||72.92|
|Today Daily Change||-2.78|
|Today Daily Change %||-3.67|
|Today daily open||75.7|
|Previous Daily High||75.82|
|Previous Daily Low||74.29|
|Previous Weekly High||75.7|
|Previous Weekly Low||71.69|
|Previous Monthly High||74.17|
|Previous Monthly Low||66.78|
|Daily Fibonacci 38.2%||75.23|
|Daily Fibonacci 61.8%||74.87|
|Daily Pivot Point S1||74.72|
|Daily Pivot Point S2||73.73|
|Daily Pivot Point S3||73.18|
|Daily Pivot Point R1||76.25|
|Daily Pivot Point R2||76.8|
|Daily Pivot Point R3||77.79|
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Follow us on Telegram
Stay updated of all the news
EUR/USD drops below 1.0850 as DXY extends gains
EUR/USD pulled back below 1.0850 during the American session and turned negative for the day, moving away from the three-day high it hit earlier at 1.0871. The US Dollar gained momentum in a relatively quiet session.
GBP/USD retreats further from seven-week highs toward 1.2300
GBP/USD dropped to 1.2300 after the beginning of the American session amid a stronger US Dollar. Earlier on Wednesday reached the highest level since February 2 at 1.2360. The pair holds an upward bias but bulls need above 1.2300.
Gold: XAU/USD fails to retake $1,970 Premium
Gold reversed at $1,971/oz and retreated finding support above $1,960. Higher US yields make it difficult for XAU/USD to gather strength. Also, the DXY is trading at daily highs near 102.80, adding weight to gold.
XRP Price Prediction: Whales could be expecting a 20% rally
XRP price has been rising impressively, drawing investors towards the crypto asset. However, these traders might want to brace for a potential pullback following the recent rallies despite the Ripple community preparing for a win against the SEC.
Athleisure does it again as earnings blowout send LULU up 17%
Lululemon Athletica (LULU), the only heir to Nike's (NKE) success in the athletic wear realm, reported earnings late Tuesday that show why it has remained a must-own stock despite the market tanking over the past year.