Share:

  • WTI Crude Oil climbs over 1%, trading around $77.65, rebounding from a low of $75.74.
  • The rise in Oil prices is influenced by a delayed OPEC+ meeting, sparking speculations of further production cuts.
  • Expectations of extended production cuts by Saudi Arabia and Russia into the first quarter of 2024 also drive higher Oil prices.

The US Crude Oil benchmark, also known as West Texas Intermediate (WTI), advances more than 1% on Wednesday as attention turned to a delayed OPEC+ meeting. That, alongside a softer US Dollar (USD) due to dovish remarks by Fed’s Governor Christopher Waller, a former “hawk,” weighed on the buck. At the time of writing, WTI is trading at $77.65 after bouncing off daily lows of $75.74.

West Texas Intermediate (WTI) sees an uptick as market anticipates OPEC+ decisions and reacts to a dovish US Federal Reserve stance

Oil is trading positively even though the US weekly inventory report showed increased Crude Oil inventories. In the meantime, the US Dollar Index (DXY) is dropping 0.07%, exchanging hands at 102.66, unable to gather traction after the US economy grew faster than expected.

In the meantime, the OPEC+ delayed meeting keeps investors nervous on speculations for further crude Oil production cuts. The producer group noted that Oil supply cuts and a rollover of existing curbs is possible.

Sources cited by Reuters noted that “Prices are going to remain volatile until we get greater clarity out of OPEC.”

The rise in Oil prices is due to expectations that Saudi Arabia and Russia will extend their production cuts of 1.3 million barrels to the first quarter of 2024. The US Energy Information Administration (EIA) reported a surprise build in US crude Oil and distillate fuel stocks last week, indicating weak demand.

A storm in the Black Sea is another factor underpinning WTI price, with supply expected to take a toll of up to 2 million barrels per day (bpd) unable to be delivered due to weather conditions.

Kazakhstan’s largest Oilfields are cutting combined daily Oil output by 56% from November 27, the Kazakh energy ministry said.

WTI Technical Levels

 

Read the full article here

Share.

Leave A Reply

Your road to financial

freedom starts here

With our platform as your starting point, you can confidently navigate the path to financial independence and embrace a brighter future.

Registered address:

First Floor, SVG Teachers Credit Union Uptown Building, Kingstown, St. Vincent and the Grenadines

CFDs are complex instruments and have a high risk of loss due to leverage and are not recommended for the general public. Before trading, consider your level of experience, relevant knowledge, and investment objectives and seek financial advice. Vittaverse does not accept clients from OFAC sanctioned jurisdictions. Also, read our legal documents and make sure you fully understand the risks involved before making any trading decision