West Texas Intermediate rebounds but maintains a negative weekly bias
West Texas Intermediate rebounds but maintains a negative weekly bias
West Texas Intermediate (WTI) oil prices rose on Friday but formed a negative weekly Japanese candlestick as higher global supply expectations weighed on the market.
China's central bank lowered interest rates to boost growth toward a 5% target, with more fiscal measures expected before the October 1 holidays.
OPEC+ plans to increase production by 180,000 bpd monthly starting in December.
U.S. energy firms cut active oil and gas rigs for the second consecutive week, with Baker Hughes reporting a drop of 1 rig to 587.
Oil rigs decreased by 4 to 484, marking the first cut since mid-August.
However, rigs added in September rose for the third straight month.
Technical indicators show a negative 3-day Relative Strength Index (RSI) alongside a positive Moving Average Convergence Divergence (MACD), while the Average Directional Index (ADX) indicates a ranging market.
The Friday rebound needs to extend into the start of this week and break $68.65-70 to target $71.45-60; otherwise, prices could face another downturn, targeting the key support zone of $64.60-$64.90, where renewed demand is expected to emerge.
Daily Chart West Texas Intermediate (WTI)
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