WTI Crude Oil Prices Rose as Producers Ready to Cut Supply

Posted Thursday, April 23, 2020 by
Arslan Butt • 1 min read

[[WTI]] crude oil prices rose as the expectations are high that producers are set to cut supply in the wake of demand destruction from the coronavirus outbreak. Additionally, the state of Oklahoma also showed a willingness to help oil firms pump less.

The US West Texas Intermediate (WTI) soared up 98 cents, or more than 7%, at $14.76 a barrel, having increased around a fifth in the previous session. US crude futures dropped to below minus $40 on Monday due to concerns that buyers were running out of storage capacity to make deliveries.

Analysts warned that the rise in crude oil could be short-lived as storage tanks fill around the world, but prices recovered ground because investors reassessed the resilience of the world’s economy due to the global health emergency.

As we already mentioned, the Organization of the Petroleum Exporting Countries (OPEC), Russia, and other producers – a group known as OPEC+, are ready to cut supply by a record 9.7 million barrels per day (bpd) from May 1.

Daily Support and Resistance
S1 2.33
S2 8.26
S3 11.59
Pivot Point 14.2
R1 17.53
R2 20.14
R3 26.08

US Oil prices recovered after falling to $7.50 previously. For now, the prices are holding around 16.85 level, right below the next resistance level of 17.55, which marks the 61.8% Fibonacci retracement. Bullish crossover of 17.55 level can extend bullish trend until 20.75 level. On the lower side, immediate support holds around 14.70 level today. Bullish bias will be stronger above 17.55 and bearish below the same.

Good luck!

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