WTI Crude Oil: US considers plan to release 180M barrels of oil
Current trend
WTI Crude Oil lost about $5 a barrel on Thursday after reports that US authorities are considering releasing up to 180M barrels of "black gold" from their reserves, the largest energy release in the nearly 50-years history of the Strategic Oil Reserve. The measure will aim to combat the rapid rise in gasoline prices and the reduction in energy supplies against the backdrop of anti-Russian sanctions imposed after the start of a special military operation in Ukraine. Against this backdrop, US West Texas Intermediate futures for May delivery fell 5.8% to 101.59 dollars per barrel after hitting a low of 100.85 earlier.
The OPEC+ meeting will take place today at 12:00 (GMT+2). It is expected that the cartel will continue to adhere to previously announced plans for oil production, and quotas will increase by 400K barrels per day. It is reported that in February, the participants fulfilled the agreement by 136%.
The release of additional US oil to the market may be effective in reducing volatility and containing sharp upward movements, but since OPEC+ remains unwilling to increase production significantly, this decision will not be able to affect prices in the long term. Also, investors will observe the course of hostilities and negotiations aimed at a ceasefire on the territory of Ukraine. A potential de-escalation of the military conflict could stop the sharp rise in energy prices, but the imposed sanctions against Russia and the inability to replace Russian oil in a short period will put upward pressure on the market.
Support and resistance
The long-term trend is upwards. After reaching 130.00, the quotes went into correction and tested the support level of 95.00, from which a new upward impulse began, which continued to 117.50. This week, market participants are testing the support level of 103.00, which will bring the instrument to 117.50. The breakdown of 103.00 will be the catalyst for a decline to 95.00.
The medium-term trend remains upward. Currently, the price is trying to consolidate below the key support zone 106.21–105.01. If successful, the trend will change to a downtrend, and the target for sales will be target zone 2 (94.21–93.01). If the key support of the trend is held, then the growth will continue with the target of around 119.66–118.46.
Resistance levels: 117.50, 130.00.
Support levels: 103.00, 95.00, 85.00.
WTI Crude Oil lost about $5 a barrel on Thursday after reports that US authorities are considering releasing up to 180M barrels of "black gold" from their reserves, the largest energy release in the nearly 50-years history of the Strategic Oil Reserve. The measure will aim to combat the rapid rise in gasoline prices and the reduction in energy supplies against the backdrop of anti-Russian sanctions imposed after the start of a special military operation in Ukraine. Against this backdrop, US West Texas Intermediate futures for May delivery fell 5.8% to 101.59 dollars per barrel after hitting a low of 100.85 earlier.
The OPEC+ meeting will take place today at 12:00 (GMT+2). It is expected that the cartel will continue to adhere to previously announced plans for oil production, and quotas will increase by 400K barrels per day. It is reported that in February, the participants fulfilled the agreement by 136%.
The release of additional US oil to the market may be effective in reducing volatility and containing sharp upward movements, but since OPEC+ remains unwilling to increase production significantly, this decision will not be able to affect prices in the long term. Also, investors will observe the course of hostilities and negotiations aimed at a ceasefire on the territory of Ukraine. A potential de-escalation of the military conflict could stop the sharp rise in energy prices, but the imposed sanctions against Russia and the inability to replace Russian oil in a short period will put upward pressure on the market.
Support and resistance
The long-term trend is upwards. After reaching 130.00, the quotes went into correction and tested the support level of 95.00, from which a new upward impulse began, which continued to 117.50. This week, market participants are testing the support level of 103.00, which will bring the instrument to 117.50. The breakdown of 103.00 will be the catalyst for a decline to 95.00.
The medium-term trend remains upward. Currently, the price is trying to consolidate below the key support zone 106.21–105.01. If successful, the trend will change to a downtrend, and the target for sales will be target zone 2 (94.21–93.01). If the key support of the trend is held, then the growth will continue with the target of around 119.66–118.46.
Resistance levels: 117.50, 130.00.
Support levels: 103.00, 95.00, 85.00.