WTI climbs over 1% on positive OPEC+ outlook, production adjustments

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  • West Texas Intermediate (WTI) crude oil sees an uptick, buoyed by OPEC+'s revised demand outlook and production shifts.
  • OPEC+ report indicates an increase in oil production, particularly from Iran, Angola, and Nigeria, countering concerns over a slowing Chinese economy.
  • US Energy Information Administration (EIA) forecasts that a slight decrease in US oil production and Fed hawkish remarks could dent Oil’s demand.

West Texas Intermediate (WTI), the US Crude Oil benchmark, advances more than 1% on Monday, courtesy of an upward revised outlook for Oil’s demand, OPEC+ reported, easing off worries that a global economic outlook could influence prices, amongst less demand woes. WTI is trading at $78.18.

West Texas Intermediate benefits from OPEC+'s optimistic demand forecast and production changes

A report from the Organization of Petroleum Exporting Countries and its allies (OPEC+) upward revised oil production, disregarding fears linked to a weak Chinese economy, which could dent oil demand. OPEC+ added that production rose due to production increases in Iran, Angola, and Nigeria.

On the contrary, a report from the US Energy Information Administration (EIA) said that US oil production would rise slightly less than expected previously, which was blamed on a lower demand. Alongside that, a hawkish stance by the US Federal Reserve (Fed) Chairman Jerome Powell, suggesting that it could raise rates, stroked fears about WTI’s demand outlook.

Another Fed hike could underpin the Greenback (USD), a headwind for US dollar-denominated commodities, which could weigh WTI prices.

Nevertheless, Saudi Arabia and Russia pledge to maintain a 1.3 million barrel cut toward the end of 2023, which would likely keep Oil’s price underpinned and most likely at around current prices.

WTI Price Analysis: Technical outlook

From a technical standpoint, WTI is testing the 200-day moving average  (DMA) at $78.19, which would open the door for further upside, like the $80.00 per barrel barrier. A breach of the latter would expose the November 7 high of $81.01, ahead of challenging the 50-DMA at $82.45. On the flipside, if the 200-DMA holds, a WTI dive toward the November 8 swing low of $74.96 is on the cards.

WTI US OIL

Overview
Today last price 78.14
Today Daily Change 0.90
Today Daily Change % 1.17
Today daily open 77.24
 
Trends
Daily SMA20 82.62
Daily SMA50 85.5
Daily SMA100 81.61
Daily SMA200 77.98
 
Levels
Previous Daily High 77.71
Previous Daily Low 75.35
Previous Weekly High 82.01
Previous Weekly Low 74.94
Previous Monthly High 90.88
Previous Monthly Low 80.52
Daily Fibonacci 38.2% 76.81
Daily Fibonacci 61.8% 76.26
Daily Pivot Point S1 75.83
Daily Pivot Point S2 74.41
Daily Pivot Point S3 73.47
Daily Pivot Point R1 78.19
Daily Pivot Point R2 79.13
Daily Pivot Point R3 80.55

 

 

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