- WTI crude oil pares the biggest weekly loss since early August, renews intraday high of late.
- Most OPEC+ members defend output cut decision after the White House criticized the move.
- DXY pullback adds strength to oil’s recovery amid a sluggish week-start.
- China trade numbers, updates from CCP can entertain intraday buyers.
WTI crude oil picks up bids to renew intraday high around $85.30 as bulls cheer the latest US attack, verbally, on the OPEC+ decision and the response from the oil producers. In doing so, the black gold consolidates the biggest weekly loss in 2.5 months.
Ever since the Organization of the Petroleum Exporting Countries and allies including Russia, known collectively as OPEC+, countries ignored the US push for a smaller output cut, the White House is at loggerheads with Saudi Arabia. The criticism gained a response from the major OPEC+ members including United Arab Emirates, Kuwait, Bahrain, Oman and Algeria in recent days.
“OPEC+ member states lined up on Sunday to endorse the steep production cut agreed this month after the White House, stepping up a war of words with Saudi Arabia, accused Riyadh of coercing some other nations into supporting the move,” mentioned Reuters. The news also adds that the United States noted on Thursday that the cut would boost Russia's foreign earnings and suggested it had been engineered for political reasons by Saudi Arabia, which on Sunday denied it was supporting Moscow in its invasion of Ukraine.
In response, Saudi King Salman bin Abdulaziz said, per Reuters, that the kingdom was working hard to support stability and balance in oil markets, including by establishing and maintaining the agreement of the OPEC+ alliance. “His comments were backed by ministers of several OPEC+ member states including the United Arab Emirates,” adds Reuters.
Elsewhere, a softer start of the US Dollar Index (DXY) also helped the black gold to pare recent losses. That said, the DXY prints mild losses at around 113.00 by the press time. The greenback’s latest losses could be linked to the cautious optimism in the UK, after the latest political upheaval and comments from the Bank of England (BOE) Governor Andrew Bailey.
Moving on, a light calendar may restrict WTI moves but the geopolitical tensions emanating from Russia, China and recently from Saudi Arabia due to the OPEC+ moves, could keep the short-term buyers hopeful. That said, China’s monthly trade numbers and updates from the yearly Congress could also offer more directions. However, oil buyers should remain cautious amid the broad recession fears and hawkish central banks.
Technical analysis
Recovery remains elusive unless crossing the previous support line from September 27, close to $88.00 by the press time.
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.
Recommended content
Editors’ Picks
AUD/USD hovers around 0.6500 amid light trading, ahead of US GDP
AUD/USD is trading close to 0.6500 in Asian trading on Thursday, lacking a clear directional impetus amid an Anzac Day holiday in Australia. Meanwhile, traders stay cautious due ti risk-aversion and ahead of the key US Q1 GDP release.
USD/JPY finds its highest bids since 1990, near 155.50
USD/JPY keeps breaking into its highest chart territory since June of 1990 early Thursday, testing 155.50 for the first time in 34 years as the Japanese Yen remains vulnerable, despite looming Japanese intervention risks. Focus shifts to Thursday's US GDP report and the BoJ decision on Friday.
Gold price treads water near $2,320, awaits US GDP data
Gold price recovers losses but keeps its range near $2,320 early Thursday. Renewed weakness in the US Dollar and the US Treasury yields allow Gold buyers to breathe a sigh of relief. Gold price stays vulnerable amid Middle East de-escalation, awaiting US Q1 GDP data.
Injective price weakness persists despite over 5.9 million INJ tokens burned
Injective price is trading with a bearish bias, stuck in the lower section of the market range. The bearish outlook abounds despite the network's deflationary efforts to pump the price. Coupled with broader market gloom, INJ token’s doomed days may not be over yet.
Meta Platforms Earnings: META sinks 10% on lower Q2 revenue guidance Premium
This must be "opposites" week. While Doppelganger Tesla rode horrible misses on Tuesday to a double-digit rally, Meta Platforms produced impressive beats above Wall Street consensus after the close on Wednesday, only to watch the share price collapse by nearly 10%.