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WTI Drops Below $ 80.00 As Pressures Increase On The White House To Take Advantage Of SPR Oil Reserves

  • Crude oil falls nearly 1% as Democrats pressure the US president to act on high gasoline prices.
  • OPEC + maintains its crude oil production of 400,000 barrels per day, despite pressure from the United States.
  • WTI Technical Outlook: A death cross on the 4-hour chart opens the door for further losses for crude prices.

During the American session, the benchmark index of the US crude oil Western Texas Intermediate (WTI) declines as Democrats increase pressure on the White House to turn to the Strategic Petroleum Reserve (SPR) to limit soaring gasoline prices. At the time of writing, WTI extends its four-day slide, falling 1.07% and trading at $ 78.89.

According to sources cited by Bloomberg, Energy Secretary Jennifer Gharnholm told CNN that the US president is evaluating available tools, including a statement from the SPR. Market participants said that a release from the US SPR would help in the short term, but would not solve the problem.

At the beginning of the US session, oil fell as low as $ 78.33, but rebounded and recovered about $ 0.50 throughout the day.

Meanwhile, OPEC and its allies will add 400,000 barrels a day of crude oil each month to the Middle East. The cartel is cautious about the stability of demand in the coming months. Some Central and Eastern European countries have reimposed restrictions as COVID-19 cases increased.

WTI Price Forecast: Technical Outlook

On the 4-hour chart, WTI is trading within a descending channel, below the Simple Moving Averages (SMA), with the 50 SMA crossing below the 200 SMA. This means that crude is biased to the short-term decline confirmed by the Relative Strength Index (RSI) at 40, which points to the downside.

The first support level would be the pivot low of November 4 at $ 77.61. A break below the latter would expose the October 7 low at $ 74.74.

Technical levels / Support and resistance levels

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