West Texas Intermediate (WTI) tumbles to 5-month lows – Bulls lurk
West Texas Intermediate (WTI) crude oil prices continued its slide and posted a five-month low on Tuesday as demand concerns have weighed heavily on the market for a fourth consecutive day following OPEC+ meeting last week.
Elsewhere, across the news wires, comments from Russian Deputy Prime Minister Alexander Novak said OPEC+ stands ready to deepen oil production cuts in the first quarter of 2024 to eliminate "speculation and volatility" if existing actions to cut production were not enough.
At the Nov. 30 meeting, OPEC+ agreed to voluntary output cuts of about 2.2 million barrels per day (bpd) for the first quarter 2024. But at least 1.3 million bpd of those cuts were an extension of voluntary curbs Saudi Arabia and Russia already had in place.
Meanwhile, U.S. crude oil and fuel inventories rose in the week leading up to Dec. 1, according to market sources citing American Petroleum Institute figures on Tuesday.
U.S. government data on stockpiles is due on Wednesday.
Based on the technical outlook, the Relative Strength Index (RSI) 3-day ‘lookback’ indicator is negative. The Moving Average Convergence Divergence (MACD) oscillator is mixed/weak. The ADX (trend) indicator supports a weak bear trend.
As the weaker price action extends, bullish eyes are likely preparing an ambush from $70.20-45. We should see a bounce back to $74.60-80 from here.
Reassess from there as we could see an extension to $77.20-50.
Daily Chart West Texas Intermediate (WTI)
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