- WTI holding in bullish territories, despite geopolitics.
- Oil producers may meet earlier than previously planned to extend cuts to supply.
Oil is trading at $35.62 after the close on Wall Street on Monday, having rallied from a low of $34.30 to high of $35.87bbls as the spot market diverges from futures. Markets were bullish on Monday and the Dow added 92 points or 0.4%, but, despite that, oil futures settled lower on Monday.
The concerns for Beijing-Washington tensions raised concerns over the prospects for crude demand. However, a report that major oil producers may meet earlier than previously planned with intensions to possibly extend the current crude output cuts helped to keep spot prices elevated.
Short-term extension of OPEC+'s record supply cuts buoy market
A short-term extension of OPEC+'s record supply cuts, which are targeted to remove 9.7 million barrels per day is keeping the market buoyed. there is still no set date for the meeting so all ears are to the ground for the following sessions.
"Amid continued signals of firming demand, the extension of the current cuts could provide further convexity to the recovery in energy markets. Crude fundamentals remain on a tightening path throughout the summer, which will see inventory builds make way for draws, and support our long WTI Dec20-Dec21 spread," analysts at TD Securities explained.
Notwithstanding, the extremely battered momentum signals combined with the vol shock in the complex has resulted in a continued short-tilt among trend-following funds, albeit marginal in size. We do not expect significant flow from this group of participants.
|Today last price||35.74|
|Today Daily Change||0.25|
|Today Daily Change %||0.70|
|Today daily open||35.49|
|Previous Daily High||35.92|
|Previous Daily Low||32.54|
|Previous Weekly High||35.92|
|Previous Weekly Low||31.33|
|Previous Monthly High||35.92|
|Previous Monthly Low||19.61|
|Daily Fibonacci 38.2%||34.63|
|Daily Fibonacci 61.8%||33.83|
|Daily Pivot Point S1||33.38|
|Daily Pivot Point S2||31.28|
|Daily Pivot Point S3||30.01|
|Daily Pivot Point R1||36.76|
|Daily Pivot Point R2||38.02|
|Daily Pivot Point R3||40.13|
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.