WTI rises more than 1% due to the good prospects of OPEC+ and production adjustments

• WTI (West Texas Intermediate) crude oil rebounds, boosted by revised OPEC+ outlook on demand and changes in production.
• The OPEC+ report indicates an increase in oil production, especially in Iran, Angola and Nigeria, offsetting concerns about the slowdown in the Chinese economy.
• The US Energy Information Administration (EIA) predicts that a slight decline in US oil production and hawkish comments from the Fed could dent oil demand.

He West Texas Intermediate (WTI), the US crude oil benchmark, rose more than 1% on Monday, thanks to an upward revision in the outlook for oil demand, OPEC+ reported, easing fears that the global economic outlook could influence prices. prices, among other minor demand problems. WTI is trading at $78.18.

West Texas Intermediate benefits from optimistic OPEC+ forecasts for demand and production changes

A report from the Organization of the Petroleum Exporting Countries and its allies (OPEC+) revised oil production upwards, ignoring fears linked to the weakness of the Chinese economy, which could dent demand for crude oil. OPEC+ added that production increased due to production increases in Iran, Angola and Nigeria.

In contrast, a report from the US Energy Information Administration (EIA) noted that US oil production would increase somewhat less than previously expected, which was blamed on lower demand. Additionally, US Federal Reserve (Fed) Chairman Jerome Powell’s hawkish stance suggesting he could raise rates stoked fears about WTI demand prospects.

A new Fed hike could support the Dollar, a headwind for dollar-denominated commodities, which could weigh on WTI prices.

However, Saudi Arabia and Russia commit to maintaining a cut of 1.3 million barrels towards the end of 2023, which would probably keep the price of Oil supported and most likely around current prices.

WTI Price Analysis: Technical Perspective

From a technical point of view, WTI is testing the 200-day moving average (DMA) at $78.19, which would open the door to further increases, such as the $80.00 per barrel barrier. Breaking this last barrier would expose the November 7 high at $81.01, before challenging the 50-day DMA at $82.45. On the contrary, if the 200-DMA area holds, WTI could fall towards the November 8 low of $74.96.