WTI drops and pops in the open on OPEC news

WTI starts the day off indecisive in thin trade following weekend news.
OPEC+ agreed to gradually add more oil supplies to the market.

Ross J Burland FXStreet

Oil prices start out volatile with West Texas Intermediate (WTI) dropping and popping in the open following weekend news.

WTI is currently trading flat again at $71.40, but it fell in the open to a low of $70.99 and printed a high of $71.55.

Oil is suffering on the back of expectations of growing supplies and a rise in coronavirus cases that could lead to lockdown restrictions and depressed demand.

The weekend news

OPEC+ agree to gradually add more oil supplies to the market

''OPEC and its allies agreed to gradually add more oil supplies to the market from August (400,000 b/d monthly hikes until Sep 2022) after Saudi Arabia and the United Arab Emirates resolved a dispute that was blocking the deal.''

On Thursday, the group announced that global demand for oil is expected to increase next year to around levels seen before the pandemic, about 100 million bpd, led by demand growth in the United States, China and India.

Additionally, from Friday, the US oil rig count continued its slow increase, gaining two rigs this week to 380 active units, their highest since April 2020, according to energy services firm Baker Hughes. US crude production has also increased by 300,000 barrels per day (bpd) over the last two weeks, rising to 11.4 million bpd in the week ended July 9, the highest since May 2020, according to federal data.

WTI technical analysis

Technically, the price is meeting a daily support at the lows and considering the M-formation, the price could be on the verge of an upward correction of 50% of the bearish impulse to test the prior lows of 73.20.

If the price fails to break the resistance, then it would be expected to lead to an onward downside continuation in the coming week:

The targetted area is between the 67.50s and 65.30s.

Author

Ross J Burland

FXStreet

Ross J Burland, born in England, UK, is a sportsman at heart. He played Rugby and Judo for his county, Kent and the South East of England Rugby team.

EUR/USD: US Dollar comeback in the makes?

The US Dollar stands victorious at the end of another week, with the EUR/USD pair trading near a four-week low of 1.1742, while the USD retains its strength despite some discouraging American data released at the end of the week. The pair edged higher on Friday, after the United States Supreme Court ruled against President Donald Trump's tariffs, although the advance is not enough to change the latest USD flow.

GBP/USD braces for more pain, as 200-day SMA tested

GBP/USD broke the previous week’s consolidation to the downside, as sellers returned with pomp, smashing the major back toward the levels last seen in late January. The pair tested bids below the 1.3450 barrier as the US Dollar strength largely played out throughout the week, while the Pound Sterling stepped back on expectations of divergent monetary policy outlooks between the Bank of England and the US Federal Reserve.

Gold climbs to weekly tops, approaches $5,100/oz

Gold keeps the bid tone well in place at the end of the week, now hitting fresh weekly highs and retargeting the key $5,100 mark per troy ounce. The move higher in the yellow metal comes in response to ongoing geopolitical tensions in the Middle East and modest losses in the US Dollar.

Week ahead: Markets brace for heightened volatility as event risk dominates

Dollar strength dominates markets as risk appetite remains subdued. A Supreme Court ruling, geopolitics and Fed developments are in focus. Pivotal Nvidia earnings on Wednesday as investors question tech sector weakness. Yen and aussie diverge; both pound and euro could recoup their losses.

Broadening drivers of growth: Unpacking GDP and looking ahead

This week’s data delivered a familiar theme with an important twist. The U.S. economy continues to be shaped by powerful forces in high-tech and AI-related investment, but recent releases suggest the growth story may finally be broadening. At the same time, trade flows are moving in a less supportive direction, reminding us that not all parts of the economy are pulling in sync.

Ripple bulls defend key support amid waning retail demand and ETF inflows

XRP ticks up above $1.40 support, but waning retail demand suggests caution. XRP attracts $4 million in spot ETF inflows on Thursday, signaling renewed institutional investor interest.