• US crude oil extends its gains to two consecutive days, though it faces solid resistance at the 50-EMA, around $110.33.
  • OPEC+ reduced its 2022 market surplus to 1 million BPD, while Libya’s political turmoil cut production by 600K BPD.
  • WTI Price Analysis: Despite breaking an upslope trendline, oil's price has recovered those losses, and now targets $110.00.

Western Texas Intermediate, aka WTI, records a solid bounce after testing the 100-EMA on the downside near $105.88 a barrel near the daily low and got bolstered late, as OPEC+ cuts 2022 market surplus from 1.4 million BPD to 1 million BPD according to sources cited by Reuters. At the time of writing, WTI exchanges hand at $109.86 per barrel.

Oil is rising due to several factors striking the global economy. Over the weekend, the G7 is weighing on putting a lid on Russian oil prices and looking for other ways to supplant Russian oil and gas, as long as Russia keeps battling Ukraine. Meanwhile, Libya’s state oil company reported that it might suspend exports from the Gulf of Sirte amidst a worsening political crisis. Libya’s inability to resolve its political turmoil will shrink the oil market by 600,000 BPD.

In the meantime, talks between the US and Iran will restart in the coming days, according to EU chief diplomat Josep Borrell. If there is progress in Iran’s nuclear deal, crude from the country will begin to flow into the markets as a sign of relief due to the petrol shortage and high energy prices.

At the time of writing, it crossed wires that France President Macron told US President Biden that UAE is producing oil at near-maximum capacity after a conversation with UAE’s crown prince. At the same time, the Department of Energy (DOE) reported that strategic petroleum reserve oil stock dropped to 497.9 million barrels, the lowest level since April 1986.

In the meantime, the US Energy Information Administration said the timeline of publication of its Petroleum Status report that was scheduled to come out last week is still unclear but will not be published Monday, according to Bloomberg.

WTI Price Analysis: Technical outlook

The US crude oil benchmark price is trapped within the 50 and 100-EMA’s in the daily chart, each at $110.33 and $105.88, respectively. Nevertheless, WTI is upward biased, as sellers could not drag prices below the psychological $100 level.

WTI traders should be aware that despite WTI’s falling below a six-month-old upslope trendline last Tuesday, it does not mean that WTI’s trend shifted; it is just slowing, and oil is already trading near last Tuesday’s prices as WTI consolidates.

Upwards, WTI’s first resistance would be the 50-EMA at $110.00. Break above would expose the 20-EMA at $114.94, followed by the last swing high on June 14, at $123.66 per barrel.

WTI US OIL

Overview
Today last price 109.86
Today Daily Change 2.23
Today Daily Change % 2.10
Today daily open 106.16
 
Trends
Daily SMA20 113.78
Daily SMA50 109.09
Daily SMA100 104.55
Daily SMA200 91.2
 
Levels
Previous Daily High 107.62
Previous Daily Low 102.79
Previous Weekly High 110.82
Previous Weekly Low 101.17
Previous Monthly High 118.66
Previous Monthly Low 97.21
Daily Fibonacci 38.2% 105.77
Daily Fibonacci 61.8% 104.63
Daily Pivot Point S1 103.43
Daily Pivot Point S2 100.69
Daily Pivot Point S3 98.6
Daily Pivot Point R1 108.25
Daily Pivot Point R2 110.35
Daily Pivot Point R3 113.08

 

 

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.

Feed news Join Telegram

Recommended content


Recommended content

Editors’ Picks

EUR/USD remains choppy below 1.0200 on dismal EU GDP, Fed minutes eyed

EUR/USD remains choppy below 1.0200 on dismal EU GDP, Fed minutes eyed

EUR/USD is extending choppy trading below 1.0200 amid a downgrade to the Eurozone Q2 GDP and risk-aversion. The US dollar pauses its renewed upside ahead of Fed minutes. The euro remains vulnerable to recession fears and the gas crisis. 

EUR/USD News

GBP/USD recaptures 1.2100 as USD rebound fizzles

GBP/USD recaptures 1.2100 as USD rebound fizzles

GBP/USD is trading above 1.2100 in the European session on Wednesday as investors assess the implications of surging UK inflation on the BOE's next policy move. The US dollar fails to hold the upside amid souring risk sentiment ahead of US data and Fed minutes. 

GBP/USD News

Gold struggles near one-week low, focus remains on FOMC minutes

Gold struggles near one-week low, focus remains on FOMC minutes

Gold turns lower for the third successive day amid the emergence of fresh USD buying. Hawkish Fed expectations, rising US bond yields continue to underpin the greenback. Recession fears could limit losses for the XAU/USD ahead of the key FOMC minutes.

Gold News

Solana price hints at a 50% upswing under these specific conditions

Solana price hints at a 50% upswing under these specific conditions

Solana price shows an interesting setup as it tries to overcome a stiff resistance level. The fifth attempt to overcome hurdles will likely be successful due to multiple bullish confluences. Solana price has been on a clear uptrend since producing the June 14 swing low at $25.76.

Read more

FXStreet Premium users exceed expectations

FXStreet Premium users exceed expectations

Tap into our 20 years Forex trading experience and get ahead of the markets. Maximize our actionable content, be part of our community, and chat with our experts. Join FXStreet Premium today!

BECOME PREMIUM

Forex MAJORS

Cryptocurrencies

Signatures