- WTI crude oil is up more than 1% and is trading around $77.65, bouncing from a low of $75.74.
- The rise in Oil prices is influenced by the delay of the OPEC+ meeting, which has sparked speculation about new production cuts.
- Expectations that Saudi Arabia and Russia will extend their production cuts into the first quarter of 2024 are also driving up oil prices.
Benchmark US crude oil, also known as West Texas Intermediate (WTI), rose more than 1% on Wednesday, as attention focused on the delay of the OPEC+ meeting. This, along with a weaker Dollar due to dovish comments from Fed Governor Christopher Waller, a former “hawk”, weighed on the Dollar. At the time of writing, WTI is trading at $77.65, after bouncing from daily lows of $75.74.
West Texas Intermediate (WTI) rebounds as the market anticipates OPEC+ decisions and reacts to the dovish stance of the US Federal Reserve
Oil is trading positively even though the weekly US inventory report showed an increase in crude oil inventories. Meanwhile, the Dollar Index (DXY) retreats 0.07%, moving to 102.66, unable to gain momentum after the US economy grew faster than expected.
Meanwhile, the delay of the OPEC+ meeting keeps investors nervous who are speculating on further cuts in crude oil production. The producer group noted that cuts in oil supply and a refinancing of existing cuts are possible.
Sources cited by Reuters indicated that “Prices will remain volatile until OPEC pronounces itself more clearly.”
The rise in oil prices is due to expectations that Saudi Arabia and Russia will extend their production cuts of 1.3 million barrels until the first quarter of 2024. The US Energy Information Administration (EIA) reported last week of a surprising build in crude oil and distillate fuel stocks in the US, indicating weak demand.
A storm in the Black Sea is another factor supporting the price of WTI, as supply is expected to take a toll of up to 2 million barrels per day (bpd) that cannot be supplied due to weather conditions.
Kazakhstan’s largest oil fields are reducing their combined daily oil production by 56% since November 27, the Kazakh Ministry of Energy reported.
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.
