- The WTI crude is negotiated about $ 65.50 while the operators expect the key oil inventory data from the US at 20:30 GMT.
- The OPEC+ report indicates an increase in supply through the third quarter, reinforcing the pressure on the WTI.
- The technical pressure increases as the WTI falls below the key mobile average support by $ 64.81.
The West Texas Intermediate (WTI) crude oil is still under pressure on Tuesday, since a growing global supply perspective weighs on feeling.
At the time of writing, the WTI is negotiated above $ 65.00 with daily losses of 0.55%. The operators are digesting the last supply guide of the Organization of Petroleum Exporting Countries (OPEC) and waiting for the key Inventory data of the USA. Later in the day.
The continuous expansion of production by OPEC+ and the weak demand for US refineries are reinforcing the downward pressure.
The OPEC+ report indicates an increase in supply through the third quarter, reinforcing the pressure on the WTI
The monthly Petroleum Market Report of the Julio OPEC reaffirmed the expectations of an increase in oil supply through the third quarter. The report highlighted the firm demand in Asia and the macroeconomic conditions in improvement in the United States and the Eurozone.
The Cooperation Declaration Group (DOC), also known as OPEP+, is composed of OPEC members, including Saudi Arabia, Iraq, Iran and the EAU, as well as non -members of the OPEC such as Russia, Kazakhstan and Mexico.
The report indicated that “the DOC group has agreed to gradually increase production levels from [julio]with a phase approach that will continue in August, “said the OPEC.
“This is based on the continuous robust demand in Asia and a recovery in the main Western economies.”
In June, OPEC+ crude oil production increased by 349,000 barrels per day (BPD), carrying the total production of the group to 41.56 million BPD.
OPEC also projected that non OPEC fluid production will increase by 0.8 million barrels per day in 2025, led by the United States, Brazil and Canada.
US API inventories in the focus while WTI falls
The American Petroleum Institute (API) is ready to publish its weekly inventories of crude oil at 20:30 GMT. The publication is closely followed by its short -term price implications.
After the surprising increase of 7.1 million barrels last week, market expectations are a reduction of 2 million barrels.
A reduction greater than expected could offer a temporary support for the WTI, while another increase could intensify the bearish impulse.
Technical Petroleum Analysis: The WTI crude is directed towards the mobile average support at $ 64.81
In the daily chart, the WTI is negotiated above $ 65.00 as the price is close to a critical support level in the single mobile average (SMA) of 100 days in 64.81 $. The 50 -day SMA is currently positioned just below $ 64.71, forming a key confluence zone.
A sustained rupture below the fibonacci setback of 38.2% of the January-April fall at $ 64.18 would expose the minimum of June 24 at $ 63.73, potentially opening the door to a greater fall around $ 60.58.
WTI crude oil daily graphics
The impulse indicators also show deterioration, with the relative force index (RSI) descending to 47, reflecting a bullish impulse that fades while maintaining above the overall conditions.
Upwards, the resistance remains firm at $ 66.75, a level that is closely aligned with the maximums recent from July 10 to 12, where the WTI reached its maximum point and was reversed.
This area is also located just below 50% setback, reinforcing its importance as a psychological resistance zone about $ 67.08. More resistance is found in the 200 -day SMA at $ 68.00, limiting any short -term recovery attempt.
WTI oil – frequent questions
WTI oil is a type of crude oil that is sold in international markets. WTI are the acronym of West Texas Intermediate, one of the three main types that include the Brent and Dubai’s crude. The WTI is also known as “light” and “sweet” by its relatively low gravity and sulfur content, respectively. It is considered high quality oil that is easily refined. It is obtained in the United States and is distributed through the Cushing Center, considered “the crossing of the world.” It is a reference for the oil market and the price of WTI is frequently traded in the media.
Like all assets, supply and demand are the main factors that determine the price of WTI oil. As such, global growth can be a driver of the increase in demand and vice versa in the case of weak global growth. Political instability, wars and sanctions can alter the offer and have an impact on prices. OPEC decisions, a group of large oil -producing countries, is another key price factor. The value of the US dollar influences the price of WTI crude oil, since oil is mainly traded in US dollars, so a weaker dollar can make oil more affordable and vice versa.
Weekly reports on oil inventories published by the American Petroleum Institute (API) and the Energy Information Agency (EIA) influence the price of WTI oil. Changes in inventories reflect the fluctuation of supply and demand. If the data show a decrease in inventories, it can indicate an increase in demand, which would raise the price of oil. An increase in inventories may reflect an increase in supply, which makes prices lower. The API report is published every Tuesday and that of the EIA the next day. Their results are usually similar, with a 1% difference between them 75% of the time. EIA data is considered more reliable, since it is a government agency.
The OPEC (Organization of Petroleum Exporting Countries) is a group of 13 nations oil producing that collectively decide the production quotas of member countries in biannual meetings. Their decisions usually influence WTI oil prices. When OPEC decides to reduce fees, it can restrict the supply and raise oil prices. When OPEC increases production, the opposite effect occurs. The OPEC+ is an expanded group that includes another ten non -members of the OPEC, among which Russia stands out.
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
