- The weakness of the US dollar supported the recovery in WTI and rumors that OPEC+ could consider further supply cuts at its next meeting on November 26.
- Russia’s recent lifting of its gasoline export ban could limit the rise in WTI prices.
- Baker Hughes’ latest US rig count indicates a possible increase in oil supply, which could put downward pressure on oil prices.
US oil benchmark West Texas Intermediate (WTI) rallied more than 2% on Monday and is testing the 200-day moving average (DMA) at $78.13 in the North American mid-session. At the time of writing, WTI is trading at $78.32, after hitting a daily low of $75.49.
Oil prices bolstered by dollar weakness and geopolitical tensions
The price of oil remains supported by the weakness of the US Dollar (USD), along with sources claiming that the Organization of the Petroleum Exporting Countries and its allies (OPEC+) are considering additional supply cuts when the cartel meets on the 26th. of November.
Traders are keeping a close eye on the Russian crude oil trade after Washington imposed sanctions on ships shipping Russian crude to India, above the price cap imposed by Washington and the G7 group.
On Friday, Moscow lifted a ban on gasoline exports, which could cap WTI prices. The latest Baker Hughes rig count in the US suggested that oil prices could decline as a higher number of rigs indicates increased supply.
Meanwhile, US refineries are on track to boost production by 559,000 barrels per day (bpd) this week as they emerge from planned fall maintenance, leaving just 264,000 bpd of capacity offline.
Aside from this, geopolitical risks could boost oil prices, although the Middle East conflict between Israel and Hamas remains contained within the Gaza Strip.
WTI technical levels
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.
