WTI Crude Oil Prices Rise as Hopes of Output Cuts Increase
WTI crude oil prices rose by 2.7% to $35.27, on hopes that the United States producers would cut output, but the gains were limited due to the growing uncertainty about Washington’s stimulus package to fight the coronavirus, which continues to spread globally.
WTI crude oil prices have recovered almost half of Monday’s 25% loss, which was based on the clash of oil titans Saudi Arabia and Russia. Whereas, the expectations that US shale oil producers will need to cut output in order to improve the market sentiment lent some support to prices and aided in the recovery.
The US crude oil inventories rose in the most recent week, while gasoline and distillate stocks dropped, data from industry group the American Petroleum Institute showed on Tuesday.
Daily Support and Resistance
S1 27.84
S2 30.99
S3 33.05
Pivot Point 34.15
R1 36.21
R2 37.31
R3 40.46
Technically, WTI crude oil is trading at $34 per barrel, mostly maintaining sideways trading range of 34.40 – 27.33. At the moment, 34.35 resistance is very, very crucial for crude oil as the MACD is extremely oversold, and traders need a reason to long on crude oil. Breakout of 34.35/40 can be that reason which may attract some buying in crude oil and may lead its prices towards 38. Let’s look to stay bearish below 34 and bullish above 34.40 area today.
Good luck!
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