WTI remains stuck in range around $75, awaits OPEC+ decision
- WTI hovers around $75 as OPEC+ delays talks.
- Infighting with OPEC+ lifted US oil above $76 on Thursday.
- WTI’s fate hinges on the much-awaited OPEC+ verdict.
WTI (futures on Nymex) is fluctuating between gains and losses so far this Friday, although keeping its range around the $75 mark, awaiting the decision from the OPEC and its allies (OPEC+) meeting for the next direction.
The US oil rallied 2.5% to renew fresh two-and-a-half-year highs at $76.22 a day before after infighting between the members of the alliance fuelled anxiety and spurred the prices. According to sources, UAE was unhappy and apparently blocked a plan for an immediate easing of cuts and their extension to the end of 2022.
Meanwhile, it was reported that “Saudi Arabia and Russia had reached a preliminary agreement, which would see output rise by 0.4 million bpd a month from August to December 2021 to meet rising global demand,” per Reuters.
Investors took the delay in the OPEC+ talks as an excuse to take profits off the table, especially after the solid upsurge. Therefore, the black gold fell nearly $1 and now extends the consolidative mode amid jittery markets.
Concerns over the Delta covid strain flareups also keep the demand for the higher-yielding oil largely subdued. At the time of writing, WTI trades modestly flat at $75.06, on track to book the sixth straight weekly gain.
WTI technical levels to consider
Author
Dhwani Mehta
FXStreet
Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.
