WTI Falls Near $63 on OPEC+ Supply Hike Concerns.
WTI slips toward $63.00 amid expectations of higher Oil supply from OPEC+.
FUNDAMENTAL OVERVIEW:
West Texas Intermediate (WTI) crude extended its decline for a second straight session, trading near $63.20 per barrel in Thursday’s session. Prices came under pressure after reports suggested OPEC+ may consider new output hikes in October, potentially unwinding 1.65 million bpd of cuts, or about 1.6% of global demand.
The group had earlier agreed to raise production by 2.2 million bpd between April and September, along with an extra 300,000 bpd increase for the UAE, according to Reuters.
Adding to bearish sentiment, API data showed U.S. crude stocks rising by 0.6 million barrels, against forecasts of a 3.4-million-barrel draw, highlighting weaker demand. Concerns over slowing fuel consumption were further underscored by a softer ISM Manufacturing PMI of 48.7 in August, below expectations of 49.0.
Looking ahead, traders await key U.S. data, including Nonfarm Payrolls expected to show a 75,000 job gain and an unemployment rate of 4.3%, which could guide the Federal Reserve’s policy outlook.
CRUDE OIL TECHNICAL ANALYSIS CHART:
Technical Overview:
Crude Oil is trading within a down channel.
Crude Oil is moving below all the Moving Averages (SMA).
The Relative Strength Index (RSI) is in Neutral Zone, while the Stochastic oscillator suggests Negative trend.
Immediate Resistance level: 64.55
Immediate support level: 61.50
HOW TO TRADE CRUDE OIL
Following a strong rally, Crude Oil met stiff resistance and sharply reversed, wiping out prior gains as it slid into a support zone where it briefly steadied before rebounding. The rebound proved short-lived, with prices resuming their decline and breaking below key support. At present, Crude Oil is retesting resistance, and another rejection could accelerate losses toward critical support levels.