WTI Crude Oil Price Forecast: USOIL Drops to $73.17 Amid OPEC+ Supply Boost and Rising Stocks

WTI crude oil prices have dipped to near four-month lows, currently priced at $73.17 per barrel, amidst pivotal developments in the global oil market. This price movement follows the OPEC+ decision to increase oil supply starting October this year, despite signals of faltering demand growth.

Impact of OPEC+ Supply Decisions

Despite the market’s initial reactions, OPEC+’s decision to boost supply by 500,000 barrels per day in the fourth quarter of 2024 underscores a strategic shift. Saudi Arabia has indicated flexibility, with potential adjustments if the increased supply overshoots the actual market demand.

Surge in U.S. Crude and Fuel Inventories

Recent data from the American Petroleum Institute (API) revealed a significant increase in U.S. crude inventories, which rose more than 4 million barrels in the last week of May, sharply contrasting with analysts’ expectations of a decline.

This increase, alongside a double-than-expected rise in gasoline stocks, has injected bearish sentiments into the market.

Technical Analysis and Price Movement

Currently, WTI Crude is navigating through key technical levels, with immediate resistance observed at $74.91 and further resistance at $76.08 and $77.10. Support levels are firm at $71.65, with additional support at $70.40 and $68.87.

The 50-day Exponential Moving Average (EMA) stands at $77.46, while the 200-day EMA is at $79.26, indicating a bullish stance above the $73 pivot point. However, a breach below could significantly escalate selling pressures.

This comprehensive outlook on the WTI Crude Oil price forecast highlights the intricate balance between supply adjustments and market reactions, suggesting a cautious yet observant approach for stakeholders.

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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