West Texas Intermediate (WTI) topside assessment is vulnerable
West Texas Intermediate (WTI) topside assessment is vulnerable
West Texas Intermediate (WTI) crude extended its gains from Monday, rising over $1 a barrel on Tuesday.
Reports suggest that OPEC+ is contemplating extending voluntary oil output cuts into the second quarter to provide further support.
In November, the Organization of the Petroleum Exporting Countries (OPEC) and allies, led by Russia, agreed to voluntary cuts of around 2.2 million barrels per day (bpd) for the first quarter of the year, with Saudi Arabia maintaining its own voluntary cut.
Sources indicate that the producer group may keep these additional cuts in place until the end of the year.
In economic news, the American Petroleum Institute (API) will release its weekly U.S. crude inventories data, followed by the government's report on Wednesday.
Also, this week, the focus is on January's personal consumption and expenditures report, a crucial inflation gauge for the Federal Reserve.
Since Monday's rebound, based on the technical analysis assessment, the Relative Strength Index (RSI) and Moving Average Convergence Divergence (MACD) oscillator are positive but slightly mixed, while the ADX (trend) indicator suggests a ranging market.
Following Monday’s rebound near the critical support at $75.45, market bulls are regrouping and gearing up to move towards the $78.50-60 level.
A breakthrough here would invalidate the recent bearish engulfing Japanese candlestick pattern and strengthen the bullish signal from the inverse head and shoulders pattern, potentially aiming for $81-$83.
Daily Chart West Texas Intermediate (WTI)
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