WTI recovers from four-month low as Kuwait denies division in OPEC+ on output cuts

WTI bounces from the 4.5-month low of 34.92 reached Thursday.
Russia and Saudi Arabi favor extending the current output cut deal into 2021.
Kuwait says it will support any decision by OPEC+ on the oil supply policy.

Omkar Godbole FXStreet Contributor

Oil chalked out a minor recovery rally during Friday's Asian trading hours after Kuwait said there is no division in OPEC+ countries regarding extending the current output cuts into next year.

The West Texas Intermediate (WTI) crude, the North American oil benchmark, bounced to $36.50 from the overnight low of $34.92 – the level last seen on June 15.

The selling pressure ebbed as Kuwait assured markets that it would support any OPEC+ decision on oil supply.

Wires reported Thursday that some OPEC+ members, a group of major producers led by Saudi Arabia and Russia, are against the Kingdom's idea of extending the existing output cuts of 7.7 million barrels per day into the next year. The division reports likely added intensified the risk-off-driven sell-off in oil, causing a decline to multi-month lows.

Kuwait's comments, however, eased concerns, allowing a price bounce. The oil-exporting nation also denied reports of the divide in the OPEC+.

In April, major producers announced production cuts of nearly 10 million barrels per day to counter the coronavirus-induced price sell-off. The deal took effect from May 1 and was revised to 7.7 million barrels per day in the third quarter.

Technical levels

WTI

Overview
Today last price	36.55
Today Daily Change	0.30
Today Daily Change %	0.83
Today daily open	36.25

Trends
Daily SMA20	39.86
Daily SMA50	40.22
Daily SMA100	40.46
Daily SMA200	37.98

Levels
Previous Daily High	37.9
Previous Daily Low	35.08
Previous Weekly High	41.93
Previous Weekly Low	39.65
Previous Monthly High	43.56
Previous Monthly Low	36.43
Daily Fibonacci 38.2%	36.16
Daily Fibonacci 61.8%	36.83
Daily Pivot Point S1	34.92
Daily Pivot Point S2	33.59
Daily Pivot Point S3	32.1
Daily Pivot Point R1	37.74
Daily Pivot Point R2	39.23
Daily Pivot Point R3	40.56

Author

Omkar Godbole

FXStreet Contributor

Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.

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