- WTI marks a four-day decline, impacted by Greenback's recovery and demand-supply dynamics.
- OPEC+ agrees on 2.2 million bpd cuts for Q1 2024; Russia hints at potential deeper production cuts to curb speculation.
- Putin's caution on delayed impact of cuts follows November's revenue dip, Saudi Arabia cuts prices to Asian customers in January 2024.
Due to several factors, the US Crude Oil benchmark, known as WTI, extended its losses to four straight days. Firstly, the Greenback is staging a recovery, while Oil’s seesawed after demand concerns offset supply worries after Russia said OPEC+ was ready to deepen cuts in the first quarter of 2024. WTI is trading at $72.72 per barrel, down 0.41%.
Oil markets face headwinds as demand worries counter OPEC+ supply cuts; WTI trades at $72.72, down 0.41%
In the latest OPEC+ meeting on November 30, members agreed to output cuts of 2.2 million barrels per day (bpd) for the first quarter of 2024, with 1.3 million of those provided by an extension of Saudi Arabia and Russia's voluntary cuts already in place since August 2023.
Despite that, Russian Deputy Prime Minister Alexander Novak stated that OPEC+ could deepen production cuts, to eliminate “speculation and volatility.”
Recently, Russia’s President Vladimir Putin said that cuts would take time to begin, as its revenues in November fell to 961.7 billion roubles ($10.53 billion) from 1.635 trillion roubles in the previous month.
In the meantime, Saudia Arabia is curbing its prices to Asian customers in January 2024 for the first time since June 2023.
WTI Price Analysis: Technical outlook
From a technical perspective, WTI is testing the lows of November 2023 and is about to form a double bottom if prices remain firm above $72.00. In that outcome, WTI's first resistance would be today’s high at $74.00, followed by the December 4 high at $75.00. A breach of those two levels would expose the 200-day moving average (DMA) at $78.03, ahead of the $80.00 threshold.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD stays near 1.0400 in thin holiday trading
EUR/USD trades with mild losses near 1.0400 on Tuesday. The expectation that the US Federal Reserve will deliver fewer rate cuts in 2025 provides some support for the US Dollar. Trading volumes are likely to remain low heading into the Christmas break.
GBP/USD struggles to find direction, holds steady near 1.2550
GBP/USD consolidates in a range at around 1.2550 on Tuesday after closing in negative territory on Monday. The US Dollar preserves its strength and makes it difficult for the pair to gain traction as trading conditions thin out on Christmas Eve.
Gold holds above $2,600, bulls non-committed on hawkish Fed outlook
Gold trades in a narrow channel above $2,600 on Tuesday, albeit lacking strong follow-through buying. Geopolitical tensions and trade war fears lend support to the safe-haven XAU/USD, while the Fed’s hawkish shift acts as a tailwind for the USD and caps the precious metal.
IRS says crypto staking should be taxed in response to lawsuit
In a filing on Monday, the US International Revenue Service stated that the rewards gotten from staking cryptocurrencies should be taxed, responding to a lawsuit from couple Joshua and Jessica Jarrett.
2025 outlook: What is next for developed economies and currencies?
As the door closes in 2024, and while the year feels like it has passed in the blink of an eye, a lot has happened. If I had to summarise it all in four words, it would be: ‘a year of surprises’.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.