WTI Crude Oil Slips Despite OPEC+ Deal – Quick Trade Plan

During Tuesday’s Asian session, WTI crude oil stopped its 2-day losing streak and rose around 1% after the US Energy Information Administration (EIA) predicted shale output in the world’s biggest crude producer would fall by a record amount in April, adding to cuts from other major producers.

The Officials from the OPEC, US, Russia, and Canada, recently agreed for 9.7 million barrels per day (bpd) of cut in output. However, Saudi Energy Minister said on Monday that effective global oil supply cuts would amount to around 19.5 million bpd, taking into account the reduction pact agreed by OPEC+, contracts by other G20 nations and oil purchases into reserves.

Moreover, the reason behind the uptick in oil prices could also be the upcoming meeting between the Texas oil and gas regulators to consider oil production limits in the face of oil market rout.

Daily Support and Resistance

S1 24.46

S2 26.24

S3 27.15

Pivot Point 28.02

R1 28.93

R2 29.81

R3 31.59

Crude oil is now showing a slight bullish bias as the OPEC and OPEC+ countries have agreed to cut production to boost the oil prices. However, investors still believe that the production cut will not be enough to support oil prices as COVID-19 has drastically affected oil demand overall global.

Considering this, US oil may find an immediate resistance around 2366 area, and closing of candles below this may drive selling bias until 19.20. We may not see any further trend until this particular range gets violated. So, let’s expect choppy sessions today. Good luck!

ABOUT THE AUTHOR See More

Arslan Butt

Index & Commodity Analyst

Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics.His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker.His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.

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