Oil: WTI falls after marking maximum in three weeks

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  • Oil prices fall modestly on a cautious day in the markets.
  • The barrel of WTI went from highs in weeks to daily lows in a few hours.
  • Oil market between production cuts and poor economic outlook.

Oil prices are falling modestly on Thursday and are retreating from highs in weeks. Hours ago, they peaked, buoyed by the OPEC+ decision, but recently erased intraday gains.

Risk aversion vs OPEC+ effect

On Wednesday the Organization of the Petroleum Exporting Countries and its allies agreed to reduce production quotas by 2 million barrels. This gave a boost to the price of crude oil, which on Thursday has lost momentum.

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The US could not prevent the agreement to cut production. The Biden administration is evaluating easing sanctions against Venezuela, to authorize them to supply US oil companies and help keep the price of gasoline under control.

The rises driven by the OPEC+ agreement led to a barrel of WTI reaching a maximum on Thursday at $88.62 (trading platforms). But then it lost steam and is trading at $87.20, daily lows.

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The bad weather in equity marketstogether with an upward rebound of the dollarare putting downward pressure on oil prices on Thursday.

Technical levels

WTI US OIL

Panorama
Last Price Today 86.91
Today’s Daily Change -0.53
Today’s Daily Change % -0.61
Today’s Daily Opening 87.44
Trends
20 Daily SMA 83.39
50 Daily SMA 87.68
100 Daily SMA 97.33
200 Daily SMA 96.8
levels
Previous Daily High 87.79
Previous Daily Minimum 84.87
Previous Maximum Weekly 82.51
Previous Weekly Minimum 76.08
Monthly Prior Maximum 90.14
Previous Monthly Minimum 76.08
Daily Fibonacci 38.2% 86.67
Daily Fibonacci 61.8% 85.98
Daily Pivot Point S1 85.61
Daily Pivot Point S2 83.78
Daily Pivot Point S3 82.68
Daily Pivot Point R1 88.53
Daily Pivot Point R2 89.62
Daily Pivot Point R3 91.45

Source: Fx Street

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