WTI regains $85.00 as OPEC+ members defend supply-cut verdict


  • WTI crude oil pares the biggest weekly loss since early August, renews intraday high of late.
  • Most OPEC+ members defend output cut decision after the White House criticized the move.
  • DXY pullback adds strength to oil’s recovery amid a sluggish week-start.
  • China trade numbers, updates from CCP can entertain intraday buyers.

WTI crude oil picks up bids to renew intraday high around $85.30 as bulls cheer the latest US attack, verbally, on the OPEC+ decision and the response from the oil producers. In doing so, the black gold consolidates the biggest weekly loss in 2.5 months.

Ever since the Organization of the Petroleum Exporting Countries and allies including Russia, known collectively as OPEC+, countries ignored the US push for a smaller output cut, the White House is at loggerheads with Saudi Arabia. The criticism gained a response from the major OPEC+ members including United Arab Emirates, Kuwait, Bahrain, Oman and Algeria in recent days.

“OPEC+ member states lined up on Sunday to endorse the steep production cut agreed this month after the White House, stepping up a war of words with Saudi Arabia, accused Riyadh of coercing some other nations into supporting the move,” mentioned Reuters. The news also adds that the United States noted on Thursday that the cut would boost Russia's foreign earnings and suggested it had been engineered for political reasons by Saudi Arabia, which on Sunday denied it was supporting Moscow in its invasion of Ukraine.

In response, Saudi King Salman bin Abdulaziz said, per Reuters, that the kingdom was working hard to support stability and balance in oil markets, including by establishing and maintaining the agreement of the OPEC+ alliance. “His comments were backed by ministers of several OPEC+ member states including the United Arab Emirates,” adds Reuters.

Elsewhere, a softer start of the US Dollar Index (DXY) also helped the black gold to pare recent losses. That said, the DXY prints mild losses at around 113.00 by the press time. The greenback’s latest losses could be linked to the cautious optimism in the UK, after the latest political upheaval and comments from the Bank of England (BOE) Governor Andrew Bailey.

Moving on, a light calendar may restrict WTI moves but the geopolitical tensions emanating from Russia, China and recently from Saudi Arabia due to the OPEC+ moves, could keep the short-term buyers hopeful. That said, China’s monthly trade numbers and updates from the yearly Congress could also offer more directions. However, oil buyers should remain cautious amid the broad recession fears and hawkish central banks.

Technical analysis

Recovery remains elusive unless crossing the previous support line from September 27, close to $88.00 by the press time.

Additional important levels

Overview
Today last price 85.21
Today Daily Change 0.60
Today Daily Change % 0.71%
Today daily open 84.61
 
Trends
Daily SMA20 84.17
Daily SMA50 87.06
Daily SMA100 95.74
Daily SMA200 97.2
 
Levels
Previous Daily High 88.57
Previous Daily Low 84.29
Previous Weekly High 92.63
Previous Weekly Low 84.29
Previous Monthly High 90.14
Previous Monthly Low 76.08
Daily Fibonacci 38.2% 85.92
Daily Fibonacci 61.8% 86.94
Daily Pivot Point S1 83.07
Daily Pivot Point S2 81.54
Daily Pivot Point S3 78.79
Daily Pivot Point R1 87.36
Daily Pivot Point R2 90.11
Daily Pivot Point R3 91.65

 

 

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