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WTI rises on speculation about OPEC+ meeting and weakening US dollar

  • 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

WTI US OIL

Overview
Latest price today 77.94
Today Daily Change 1.50
Today’s daily variation 1.96
Today’s daily opening 76.44
Trends
daily SMA20 77.41
daily SMA50 82.72
SMA100 daily 82.26
SMA200 daily 77.91
Levels
Previous daily high 77.06
Previous daily low 74.74
Previous weekly high 78.46
Previous weekly low 73.85
Previous Monthly High 90.88
Previous monthly low 80.52
Daily Fibonacci 38.2 76.18
Fibonacci 61.8% daily 75.63
Daily Pivot Point S1 75.1
Daily Pivot Point S2 73.76
Daily Pivot Point S3 72.77
Daily Pivot Point R1 77.42
Daily Pivot Point R2 78.41
Daily Pivot Point R3 79.75

Source: Fx Street

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