WTI loses momentum on Thursday, looks to settle near mid-$70s
- US President Trump tells OPEC to reduce oil prices on Thursday.
- Iran's Zanganeh says Brent at $80 is acceptable.
After rising to its highest level since July 13 at $71.50 on Wednesday, the barrel of West Texas Intermediate reversed its course on Thursday and fell below the $71 mark. As of writing, the barrel of WTI was trading at $70.46, losing 1.35%, or $1, on the day.
Earlier today, the U.S. President Donald Trump criticised the OPEC for keeping oil prices high in a tweet that read: "We protect the countries of the Middle East, they would not be safe for very long without us, and yet they continue to push for higher and higher oil prices! We will remember. The OPEC monopoly must get prices down now!"
Meanwhile, ahead of the OPEC+ meeting in Algiers this weekend, Iran's Oil Minister Zanganeh told reporters that he would veto OPEC decision that would harm Iran's interests and claimed that OPEC+ wouldn't be able to make a decision on oil output quotas in this weekend's meeting. Regarding Brent oil prices, Zanganeh stated that $80 per barrel would be a suitable price.
On Friday, Baker Hughes is going to publish its oil rig count data. The EIA's weekly report yesterday revealed that gasoline production in the U.S. declined slightly while crude oil stocks decreased by 2.1 million barrels.
Technical levels to consider
The initial support for the WTI aligns at $70 (psychological level) ahead of $68.50 (Sep. 18 low) and $67.50 (Sep. 11 low). On the upside, resistances are located at $71.50 (Sep. 19 high), $72.90 (May 22 high) and $74 (Jun. 28 high).
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.
