• WTI keeps bounce off late August lows, consolidating the biggest monthly fall since March 2020.
  • OPEC holds delayed meeting on Wednesday, OPEC+ eyed for Thursday amid talks over demand-supply matrix.
  • Market sentiment improves as fears over South African covid variant eases, China sounds cautiously optimistic.
  • OPEC+ supply increase in January will be crucial, US ISM Manufacturing PMI, ADP Employment Change eyed too.

WTI bulls battle $68.00, up 2.70% intraday following the drop to a three-month low. With this, the black gold licks its wounds after posting the biggest monthly fall in 21 months.

While mildly upbeat market sentiment seems to underpin the commodity’s gains, bulls await the two-day Organization of the Petroleum Exporting Countries (OPEC) meeting, starting from 13:00 GMT on Wednesday, for fresh impulse. It’s worth noting that OPEC+, which groups OPEC with allies including Russia, will meet on Thursday for a final verdict on the oil supply by the global producers.

Hawkish comments from China’s Vice Premier Liu He and expectations from the US and Japan to offer more stimulus seem to favor the market sentiment of late. Adding to the bullish bias are the recently easing virus cases in South Africa and an absence of data to claim the earlier fears of Omicron.

On the other hand, Fed Chair Jerome Powell trigged a bounce in the US Treasury yields from a two-month low by suggesting extended inflation fears and discussion over faster taper in the December meeting. Although the US 10-year Treasury yields remain firmer around 1.47%, the US Dollar Index (DXY) remains indecisive around 95.90 as stock futures and Asia-Pacific shares improve of late.

Looking forward, OPEC chatters will be the key as global oil producers are pushed for more supply increase than the earlier plans of adding 400,000 barrels per day of output starting from January. However, the latest virus-led activity restrictions and the resulted weakness in oil prices have questioned the demand outlook, allowing the cartel to ignore the US-led demands.

Elsewhere, the final readings of the Markit PMIs for November will precede the US ISM Manufacturing PMI and US ADP Employment Change for clear direction. Additionally important is the second day of testimony from Fed Chair Jerome Powell.

Technical analysis

Although an ascending support line from March 2021 restricts the immediate downside of WTI near $64.50, the commodity’s gains are likely challenged by the yearly support-turned-resistance trend line near $71.20.

Additional important levels

Overview
Today last price 68.18
Today Daily Change 1.87
Today Daily Change % 2.82%
Today daily open 66.31
 
Trends
Daily SMA20 77.44
Daily SMA50 78.57
Daily SMA100 73.85
Daily SMA200 69.81
 
Levels
Previous Daily High 71.05
Previous Daily Low 64.32
Previous Weekly High 79.02
Previous Weekly Low 67.31
Previous Monthly High 83.97
Previous Monthly Low 64.32
Daily Fibonacci 38.2% 66.89
Daily Fibonacci 61.8% 68.48
Daily Pivot Point S1 63.4
Daily Pivot Point S2 60.49
Daily Pivot Point S3 56.67
Daily Pivot Point R1 70.13
Daily Pivot Point R2 73.96
Daily Pivot Point R3 76.86

 

 

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

AUD/USD pressured around 0.6940 ahead of Australian employment data

AUD/USD pressured around 0.6940 ahead of Australian employment data

The AUD/USD pair trades near a weekly low of 0.6910, down on Wednesday as investors weigh dismal Australian data and mounting recession concerns. Employment figures coming up next.

AUD/USD News

EUR/USD ticks higher with FOMC Meeting Minutes

EUR/USD ticks higher with FOMC Meeting Minutes

EUR/USD ticked north following the release of the Federal Reserve’s document but remains subdued below the 1.0200 figure. US policymakers unanimously agreed to hike rates by 75 bps, seeing a slowing pace of hikes at some point.

EUR/USD News

Gold bears pressuring a critical Fibonacci support

Gold bears pressuring a critical Fibonacci support

The dollar is the overall winner across the FX board today and ahead of the release of the FOMC Meeting Minutes, with gold trading near a fresh one-week low.  XAUUSD is pressuring the 38.2% retracement of its latest daily advance.

Gold News

Shiba Inu on fire, another price rally around the corner?

Shiba Inu on fire, another price rally around the corner?

Shiba is closer to its breakout according to analysts. While declining trade volume and inflows to SHIB are typical of a bearish trend reversal, analysts remain bullish on SHIB. They predict recovery after the meme coin yielded nearly 50% gains within a week. 

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