Market news
04.06.2024, 01:33

WTI drops below $74.00 as OPEC+ plans to ease Oil production cuts

  • WTI price lost ground as OPEC+ intends to phase out production cuts of 2.2 million barrels per day over 2025.
  • The US is purchasing an additional 3 million barrels of Oil for the country's Strategic Petroleum Reserve.
  • Oil prices may struggle further due to the expectations of the Fed maintaining higher rates for longer.

West Texas Intermediate (WTI) Oil price continues to decline for the fifth consecutive day, trading around $73.90 per barrel during the Asian session on Tuesday. This drop in crude Oil prices is attributed to the Organization of the Petroleum Exporting Countries and allies led by Russia, known as OPEC+, announcing a gradual plan to ease some of their Oil production cuts.

OPEC+ plans to phase out voluntary production cuts of 2.2 million barrels per day (bpd) over the next year, starting in October. By December, over 500,000 bpd are expected to re-enter the market, with a total of 1.8 million bpd returning by June 2025.

According to a Reuters report, the United States is purchasing an additional 3 million barrels of Oil for the country's Strategic Petroleum Reserve (SPR), as announced by the Department of Energy on Monday. This move is part of a gradual replenishment effort following the largest sale ever in 2022. US President Joe Biden had ordered the sale of 180 million barrels over six months in 2022 to control fuel prices after Russia's invasion of Ukraine.

The latest US Personal Consumption Expenditure (PCE) data indicated that price pressures eased in April. Despite this, the report did not prompt a rate cut from the Federal Reserve (Fed), suggesting that the central bank may need more time to achieve its inflation goals. The higher interest rates are negatively impacting the US economic outlook and dampening the demand for Oil.

WTI US OIL

Overview
Today last price 73.88
Today Daily Change -0.04
Today Daily Change % -0.05
Today daily open 73.92
 
Trends
Daily SMA20 78.15
Daily SMA50 81.03
Daily SMA100 79.06
Daily SMA200 79.53
 
Levels
Previous Daily High 77.36
Previous Daily Low 73.92
Previous Weekly High 80.41
Previous Weekly Low 76.52
Previous Monthly High 81.25
Previous Monthly Low 76.04
Daily Fibonacci 38.2% 75.23
Daily Fibonacci 61.8% 76.04
Daily Pivot Point S1 72.77
Daily Pivot Point S2 71.62
Daily Pivot Point S3 69.33
Daily Pivot Point R1 76.21
Daily Pivot Point R2 78.51
Daily Pivot Point R3 79.66

 

 

© 2000-2024. All rights reserved.

This site is managed by Teletrade D.J. LLC 2351 LLC 2022 (Euro House, Richmond Hill Road, Kingstown, VC0100, St. Vincent and the Grenadines).

The information on this website is for informational purposes only and does not constitute any investment advice.

The company does not serve or provide services to customers who are residents of the US, Canada, Iran, The Democratic People's Republic of Korea, Yemen and FATF blacklisted countries.

AML Website Summary

Risk Disclosure

Making transactions on financial markets with marginal financial instruments opens up wide possibilities and allows investors who are willing to take risks to earn high profits, carrying a potentially high risk of losses at the same time. Therefore you should responsibly approach the issue of choosing the appropriate investment strategy, taking the available resources into account, before starting trading.

Privacy Policy

Use of the information: full or partial use of materials from this website must always be referenced to TeleTrade as the source of information. Use of the materials on the Internet must be accompanied by a hyperlink to teletrade.org. Automatic import of materials and information from this website is prohibited.

Please contact our PR department if you have any questions or need assistance at pr@teletrade.global.

Bank
transfers
Feedback
Live Chat E-mail
Up
Choose your language / location