Play It Again, Sam: West Texas Intermediate (WTI) Crude Rebounds
West Texas Intermediate (WTI) crude oil prices rebounded on Monday in thin trading as the U.S. was closed for Labor Day.
Friday's weakness was driven by concerns over slowing Chinese demand growth and a potential supply boost from major oil producers.
WTI’s rebound was supported by data showing China’s manufacturing activity returned to growth in August, with the Caixin/S&P Global PMI rising to 50.4 from 49.8.
Meanwhile, investors anticipate planned oil output hikes from OPEC+ members next month.
Eight OPEC+ countries will increase output by 180,000 barrels per day in October, starting to unwind their recent 2.2 million barrels per day supply cuts.
Based on technical analysis, traders should adjust risk management strategies if the bounce fades, focusing on the $71.60-$72.45 key level, with $77.40-$78.00 acting as a near-term cap.
Key indicators include a negative 3-day Relative Strength Index (RSI), a mixed Moving Average Convergence Divergence (MACD), and an Average Directional Index (ADX), suggesting a ranging market.
Daily Chart West Texas Intermediate (WTI)
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