WTI stays firm near $69.00 ahead of OPEC+ meeting
- WTI trades with gains on Wednesday in the initial European session.
- Coronavirus jitters, geopolitical concerns and demand worries weigh on WTI.
- Higher US dollar valuations exert pressure at the upper level.
Crude oil prices trade on a higher note shrugging off the previous session’s downside momentum on Wednesday. The prices opened at a higher level and continued to travel to touch the intraday high of $69.14.
At the time of writing, WTI is trading at $69.09, up 0.06% for the day.
The submissive move in the US Dollar Index (DXY), which indicates the performance of the greenback against six major rivals, keeps the prices higher and limited the downside for the black gold for the time being. The US dollar was last seen trading at 92.75, up 0.10% for the day.
Crude oil prices are being pressurized on weaker demand outlook in China and rising coronavirus cases. The increase in US crude rig count and a firmer greenback also acted as a headwind for WTI.
Meanwhile, investors turn their attention to OPEC+ meeting, at which major oil producers will decide on a mandate to go ahead with the increase in supply. However, the rising COVID-19 cases in the Asia-pacific region and the US refiners flood damage in the wake of Hurricane Ida could dampen the sentiment.
Additionally, OPEC+ decide on whether to add 400,000 barrels per day each month through December, as they expect the market to remain in deficit until the end of 2021.
American Petroleum Institute (API) industry data revealed US crude inventories fell by 4 million barrels for the week ended August 27.
As for now, eyes on US Energy Information Administration (EIA) inventory data to gauge the market sentiment.
WTI additional levels
Author
Rekha Chauhan
Independent Analyst
Rekha Chauhan has been working as a content writer and research analyst in the forex and equity market domain for over two years.
