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WTI recovers above $71 after joint statement by Russia and Saudi Arabia on production cuts

  • WTI prices recover above $71 after hitting six-month lows.
  • Saudi Arabia and Russia called on all OPEC+ members to join an agreement on production cuts for the stability of global oil markets.
  • Chinese crude oil imports decreased 9% year-on-year in November.
  • Oil traders await Friday’s US nonfarm payrolls report.

US crude oil benchmark West Texas Intermediate (WTI) recovers above $71 during the European session on Friday. WTI rebounds from six-month lows as Russia and Saudi Arabia called on members of the Organization of the Petroleum Exporting Countries and its allies (OPEC+) to adhere to production cuts.

On Thursday, Saudi Arabia and Russia, the world’s two largest oil exporters, called on all OPEC+ members to adhere to an agreement on production cuts for the stability of global oil markets. That said, positive developments around the OPEC+ production cut could lift WTI prices.

On the other hand, several recent economic indicators have revealed that China’s economic recovery is slow, which puts some selling pressure on WTI prices. Chinese crude oil imports fell 9% year-on-year in November as high inventories, negative economic data and slowing orders from independent refiners weakened demand.

Furthermore, one of the key factors behind the decline in WTI prices is the slowdown in the global economy and fears of recession. According to the International Monetary Fund, it forecasts global growth of 3.0% in 2023 and 2.7% in 2024, both figures lower than the 3.0% forecast in July.

On the other hand, oil traders will closely monitor Friday’s US nonfarm payrolls report. These data could have a significant impact on the price of WTI, denominated in dollars. Oil traders will follow the data and look for trading opportunities around WTI prices.

Technical levels

WTI

Panorama
Today’s Latest Price 71.18
Today’s Daily Change 1.32
Today’s Daily Change % 1.89
Today’s Daily Opening 69.86
Trends
20 Daily SMA 75.4
SMA of 50 Daily 80.34
SMA of 100 Daily 82.09
SMA of 200 Daily 77.81
Levels
Previous Daily High 70.64
Previous Daily Low 69.01
Previous Weekly High 79.62
Previous Weekly Low 74.04
Previous Monthly High 83.34
Previous Monthly Low 72.39
Daily Fibonacci 38.2% 70.01
Daily Fibonacci 61.8% 69.63
Daily Pivot Point S1 69.03
Daily Pivot Point S2 68.21
Daily Pivot Point S3 67.41
Daily Pivot Point R1 70.66
Daily Pivot Point R2 71.46
Daily Pivot Point R3 72.29

Source: Fx Street

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