The Ukrain drone attacks and OPEC+ reductions point to tight oil supply, driving up WTI pricing. Markets Waits FOMC Meet.

WTI crude oil Highlights

US WTI Crude prices fall as markets become more cautious before of the US Fed’s announcement.
The rising Dollar’s value decreases Crude oil consumption.
API Week’s crude oil Storage fell by 1.519 mil barrels, contrasted to a prior reduction of 5.521 mil bls.

WTI Crude Fundamentals

During European market hours on the third day US WTI prices for oil edged down to about $81.895 / barrel. After oil futures retreated from earlier peaks, with traders taking profits. Furthermore, investors have taken a wary position prior to the US Fed Reserve’s rate announcement. The stronger US dollar additionally renders oil pricey for nations that have distinct currency, reducing oil consumption.

Market experts have pointed to the Ukrainian UAV raids on Russia’s oil factories that make up for a minimum of 10 percent of the Russian overall crude oil extraction ability. Oil prices for oil rose to nearly 5-month peaks on Tue. Owing to supply-chain worries. Nevertheless, the decrease in Russia’s refinery capacity has contributed to a rise in the amount of crude oil shipments by Moscow.

The crude oil availability may be constrained after Ukrainian drone raids on Russia’s facilities. both Brent & WTI reaching their greatest prices before the end of October. The continuing output cutbacks by OPEC+ beyond the 2nd quarter of 2024. As well as potential supply cuts owing to Russian exporting issues, add to the anxiety.

All of these variables point to a positive prognosis for refined goods & perhaps narrower market for each oil. Since interruptions may push Russian refiners to reduce production should export constraints prevail.

Technical Analysis

The WTI nudged more, traded at $82.53 mark before correction, up 0.09 percent. This trend represents a tentatively hopeful feeling within the oil market. With the pivot mark near $82.31 mark. The traders have found strong levels of resistance around $83.27, $83.99, then $84.74 level, that may limit future gains.

Source: TradingView

Support lines are set around $81.56, $80.84, then $79.95 area, which serve as possible alternates in the event of a collapse. The technical context is additionally enlightened by the 50 D-EMA on $81.36 with the 200 D-EMA of $79.46 level. Which are both supporting the present level of prices.
Considering this arrangement, WTI’s trajectory seems positive over $82.3 zone. And a break beneath this mark could trigger a severe downward move.

Exponential Moving Averages

Technical Synopsis