WTI Oil trades near $74 in the aftermath of the OPEC+ meeting
Oil prices are trading at a standstill near $74 in the aftermath of a disappointing OPEC+ outcome. The split division within the group of Oil producers was significant, and the result was not what markets wanted to see in order to send Oil prices higher. Adding to that, the US is shoring up its Oil supply and buildup of its strategic stockpile, which means that once full even more oversupply will hit markets.
Meanwhile, the US Dollar (USD) is rallying firmly for a second day in a row after China received a negative outlook from rating agency Moody’s and European Central Bank (ECB) board member Isabel Schnabel mentioned that inflation is near target and the ECB is at the end of its hiking cycle. This makes markets backtrack on the idea the US Federal Reserve would be the first to cut interest rates, supporting US yields and placing the US Dollar at a higher value than the Euro and other currencies. Crude Oil (WTI) trades at $74.02 per barrel and Brent Oil trades at $78.77 per barrel at the time of writing.
Oil prices have been actually quite steady in the days after the OPEC+ official announcement. OPEC+ participants are starting to realize the missed opportunity and are trying to still salvage the situation with side comments such as those from the Saudi Energy Minister. These elements can be good for short blips, but they are unlikely to lead to substantial rallies or to install a price floor on Oil prices. On the upside, $80.00 is the resistance to watch out for. Should crude be able to jump above that again, look for $84.00 (purple line) as the next level to see some selling pressure or profit taking. Should Oil prices be able to consolidate above there, the topside for this fall near $93.00 could come back into play. On the downside, the soft floor near $74.00 is under pressure. This level is acting as the last line of defence before entering $70.00 and lower. Watch out for $67.00 with that triple bottom from June as the next support level to trade at.
Oil prices have been actually quite steady in the days after the OPEC+ official announcement. OPEC+ participants are starting to realize the missed opportunity and are trying to still salvage the situation with side comments such as those from the Saudi Energy Minister. These elements can be good for short blips, but they are unlikely to lead to substantial rallies or to install a price floor on Oil prices. On the upside, $80.00 is the resistance to watch out for. Should crude be able to jump above that again, look for $84.00 (purple line) as the next level to see some selling pressure or profit taking. Should Oil prices be able to consolidate above there, the topside for this fall near $93.00 could come back into play. On the downside, the soft floor near $74.00 is under pressure. This level is acting as the last line of defence before entering $70.00 and lower. Watch out for $67.00 with that triple bottom from June as the next support level to trade at.