WTI Crude Oil Technical Analysis

Over the weekend, OPEC+ delivered some good news for the oil market, indicating their intention to maintain prices above the $70 mark. Notably, Saudi Arabia declared an additional voluntary production cut of 1 million barrels per day (bpd) commencing in July, initially for one month, with the possibility of extension based on market conditions. Furthermore, all other members of OPEC+ will prolong their production cuts throughout 2024.

While the OPEC+ supply cuts may generate short-term bullish sentiment, it is important to recognize that during a contractionary business cycle, the demand side heavily influences the oil market. As evidenced by the recent surprising production cut, which was soon after faded, oil prices experienced a sharp decline from the $83 peak to $64. However, had it not been for the Sunday cut announcement, prices could have dropped even further by now.

The economic data Economic Data Economic data typically comes in the form of news releases that are disseminated daily. This information is extremely valuable to retail and institutional forex traders, given the influence such data has on currency rates.Most of the major economic events that are released are reported by sovereign governments throughout the globe. Moreover, there are several economic data points that are released by private organizations that can also move the market.By and large, when new information becomes a Economic data typically comes in the form of news releases that are disseminated daily. This information is extremely valuable to retail and institutional forex traders, given the influence such data has on currency rates.Most of the major economic events that are released are reported by sovereign governments throughout the globe. Moreover, there are several economic data points that are released by private organizations that can also move the market.By and large, when new information becomes a Read this Term this week has also weighed on the oil market as we got big misses in the US ISM Services PMI and the US Jobless Claims yesterday.

WTI Crude Oil Technical Analysis – Daily Timeframe

On the daily chart, we can see that oil just can’t break above the $75 resistance as it looks like we have found another range at a lower price level. That’s been the case for quite some time now that the oil market gets stuck in ranges at lower and lower levels as demand drops and OPEC+ cuts to avoid a bigger selloff in prices. The support level at $64.30 will be key to watch as a break below that should increase the selling momentum.

WTI Crude Oil Technical Analysis – 4 hour Timeframe

On the 4 hour chart, we can see that there isn’t much to glean from this chart as the price action remains erratic beneath the resistance zone. It’s just about waiting for a clear breakout or a fundamental catalyst.

WTI Crude Oil Technical Analysis – 1 hour Timeframe

On the 1 hour chart, we can see that we have a support zone at the $70 level. The buyers are likely to lean on this zone to target the $75 level first and new highs afterwards. The sellers, on the other hand, will want to see the price breaking lower to pile in and extend the selloff towards the $64 support.