WTI finds support from more oil cuts by Russia, hovers around $72.10


  • WTI attempts to recover recent losses on Russia’s deepened oil export cuts.
  • Russian Deputy Prime Minister Alexander Novak said that Russia would deepen oil cuts in December by 50,000 bpd.
  • The leading shipping firms to avoid the Suez Canal route as Houthi militants escalated their assaults on commercial vessels.

West Texas Intermediate (WTI) price struggles to regain recent losses, hovering around $72.10 per barrel in the Asian market on Monday. Crude oil prices find support from Russian Deputy Prime Minister Alexander Novak's statement. He mentioned that Russia is considering deepening oil export cuts in December by potentially 50,000 barrels per day (bpd) or more to bolster global oil prices. These additional cuts would go beyond the 300,000 bpd that had already been agreed upon for this year.

In addition, adverse weather conditions in Russia have contributed to the support for Crude oil prices. Moscow suspended approximately two-thirds of loadings from ports. Moreover, the geopolitical situation has provided a boost to oil prices, with concerns rising due to Houthi attacks on ships near Yemen. The attacks have raised worries about potential disruptions in oil supply, leading shipping firms to consider avoiding the Suez Canal as Houthi militants in Yemen escalated their assaults on commercial vessels in the Red Sea.

Moreover, the bullish forecast from the International Energy Agency (IEA) that oil consumption will increase by 1.1 million bpd in 2024 contributed to underpinning the WTI price. On Friday, the data showed that Baker Hughes Rig Counts reduced to 501 from the previous number of 503, which suggests slightly less consumption of products and services produced by the oil service industry.

The US Dollar Index (DXY) has experienced a nearly 4% weakening over the past two months. A further decline could stimulate oil demand from other countries as it becomes more affordable to purchase oil. The recent challenges for the US Dollar stem from dovish comments made by various Federal Reserve officials. Investor attention will now shift to Consumer Confidence and Existing Home Sales Change on Wednesday.

WTI US OIL: Technical levels to watch

Overview
Today last price 72.12
Today Daily Change 0.11
Today Daily Change % 0.15
Today daily open 72.01
 
Trends
Daily SMA20 73.72
Daily SMA50 78.6
Daily SMA100 81.62
Daily SMA200 77.6
 
Levels
Previous Daily High 72.56
Previous Daily Low 70.66
Previous Weekly High 72.73
Previous Weekly Low 67.97
Previous Monthly High 83.34
Previous Monthly Low 72.39
Daily Fibonacci 38.2% 71.39
Daily Fibonacci 61.8% 71.83
Daily Pivot Point S1 70.92
Daily Pivot Point S2 69.84
Daily Pivot Point S3 69.02
Daily Pivot Point R1 72.83
Daily Pivot Point R2 73.65
Daily Pivot Point R3 74.73

 

 

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