Oil whipsaws higher after UAE supports OPEC+ supply cuts ahead op COP 28

• Oil (WTI) heads higher on Monday, halting the sell-off at the end of last week.
• The US Dollar is flat and under a bit of pressure from a risk-on market mood.
• The door is open towards $94 with more headlines underway in the wake of the Adipec meeting.

Oil prices are recovering from the firm decline registered on Thursday and Friday. Crude briefly touched $94 before selling off nearly 4.5%. Energy ministers and the Oil industry are gathering for the biggest energy conference in the Middle East, which could become a key catalyst for Oil prices throughout the week.

The US Dollar (USD) did not get much time to enjoy the party over its eleventh straight week of gains. It was a close call last week, with the US Dollar Index (DXY) locking in gains in the last few trading hours. The US government shutdown might be solved for now, but the US Congress pushed the budget showdown to November, kicking the can down the road for roughly six weeks as in mid-November the US Treasury will once again run out of funds.

Crude Oil (WTI) trades at $90.26 per barrel, and Brent Oil trades at $92.17 per barrel at the time of writing. 

Oil news and market movers

• The annual Adipec summit is to take place in Abu Dhabi this week, with all important ministers and Oil producers in the Middle-East joining. 
• In the wake of the start of the Adipec Summit, the United Arab Emirates (UAE) energy minister  Suhail al Mazrouei said that OPEC+ has the right policy in place to deal with current market conditions.
• The crude Oil pipeline running from the Kurdistan region in Iraq to the Mediterranean coast of Turkey will resume operations this week, Turkish Energy Minister Alparslan Bayraktar said.
• Eni, the Italian energy company, and its CEO Claudio Descalzi said in a Bloomberg interview that more OPEC+ production cuts are highly unlikely and that the worst is over. 

Oil Technical Analysis: $94 emerges as nearby target

Oil prices are recovering after the firm price decline  recorded on Thursday and Friday. The fact that the sell-off gets halted that quickly means that traders and market participants are still buying the dip. This should see Crude  pushing back up to $94 soon. 

On the upside, the double top from October and November of last year at $93.12 remains the level to beat. Although it got breached on Thursday, the level never got a daily close above it. Should $93.12 be taken out, look for $97.11, the high of August 2022.

On the downside, a new floor is formed near $88 with the high of September 5 and 11 underpinning the current price action. Proof of this already exists with the dip of September 13 and September 21, which reversed ahead of $88. Should $88 break , the peak of August 10 needs to be enough to catch the dip near $84.20. 

US WTI Crude (Daily Chart)