WTI gains buoyed by further Russian oil cutbacks, hovering approximately $72. 0 556 mark, Sentiment improves in near term.
Key Points & Highlights
US WTI is attempting to recoup the recent declines caused by the Russian increased crude export curbs.
Russian Deputy Prime Novak said Moscow would limit oil production by 50 K barrels per day in Dec.
Prominent shipping companies are avoiding the Suez Canal’s corridor as Houthi rebels intensify their attacks on merchant boats.
The WTI price is struggling to recoup its losses lately, holding at $72.0/ 556 barrel in the European trade on today. The comment by Russian DM Novak supports the oil’s pricing. It stated that Russian might be cutting oil exports by 50 K bpd or greater in Dec in order to boost the price of oil worldwide. Such further reduction will go further than the 300 K bpd already decided on for the current year.
Source: EIA
Furthermore, severe weather events in Russia have helped to bolster oil prices. Russia has halted nearly two thirds of dock loads. Furthermore, the global scenario has boosted the cost of oil. Amid fears growing as a result of Houthi strikes on vessels approaching Yemen. The strikes have increased worries regarding potential delays in oil deliveries. Prompting maritime operators to reconsider using the Suez Canal while Houthi militants across Yemen upped the violence on cargo ships in the waters of the Red Sea.
Furthermore, the EIA’s positive prediction of 1.1 M bpd rise in consumption of oil in 2024 helped to support the WTI pricing. Last Friday, statistics indicated that Baker Hughes Rig Numbers decreased to 501 versus 503, indicating a modest decrease in the intake of oil related services and products.
Technical Perspective for WTI
US WTI remains firm at the week’s beginning bids of $71.228. Though optimism limits bids to recovery following WTI fell to a 5-month trough of $67.97 mark on the last Wed.
American crude oil has recovered more than six percent off of last week’s lowest offers. Yet stays off almost 10 percent since late the month of November highs of $79.62 mark. Which has lost more than 23 percent from higher-ended offers just short of $94.00 in Sept.
Support and Resistance Levels
S3 67.114 S2 67.924 S1 67.924 R1 79.607 R2 89.757 R3 94.238
Daily – Tecnical Indicators & Signals
| Name | Value | Action |
|---|---|---|
| RSI(14) | 58.084 | Buy |
| STOCH(9,6) | 72.374 | Buy |
| STOCHRSI(14) | 95.295 | Overbought – Caution |
| MACD(12,26) | 0.340 | Buy |
| ADX(14) | 37.445 | Buy |
| Williams %R | -14.286 | Overbought |
| Name | Value | Action |
|---|---|---|
| CCI(14) | 58.6557 | Buy |
| ATR(14) | 0.8386 | Less Volatility |
| Highs/Lows(14) | 0.4207 | Buy |
| Ultimate Oscillator | 61.896 | Buy |
| ROC | 3.946 | Buy |
| Bull/Bear Power(13) | 0.1900 | Buy |
