Hi there,
Fundamentals :
Despite an unexpected surge in US crude, gasoline, and distillate inventories, oil prices experienced a slight increase on Wednesday. WTI crude futures stabilized above $73 per barrel, initially surging over 2% after government data revealed unanticipated rises in US stocks. Investors are now closely monitoring the forthcoming OPEC+ meeting scheduled for November 30, where production policies for 2024 will be decided. While Saudi Arabia advocates for reductions in production quotas, no consensus has been reached yet. The meeting's delay to November 30 stems from a disagreement involving African producers Nigeria and Angola. Additionally, a storm in the Black Sea region disrupted oil exports from Kazakhstan and Russia. Both Brent crude futures and US West Texas Intermediate (WTI) crude futures initially rose by over a dollar, turned negative, and then rebounded following the release of the pessimistic US inventory report. Market volatility is expected to persist until there is more clarity from OPEC.
Technical Analysis:
The price found support at the 0.236 Fib-Retracement taken from the high to the Low, an important ratio for us indicating the potential end of a bearish trend. The absolute Low is estimated above 77.766, making it a key level to watch for any bullish patterns. Additionally, this level aligns with the 100 EMA, adding significance to the bullish bias with a higher low above it. The price is anticipated to reach 87.877, suggesting a bias toward 91.008 over the Fib-Extension.
K
Fundamentals :
Despite an unexpected surge in US crude, gasoline, and distillate inventories, oil prices experienced a slight increase on Wednesday. WTI crude futures stabilized above $73 per barrel, initially surging over 2% after government data revealed unanticipated rises in US stocks. Investors are now closely monitoring the forthcoming OPEC+ meeting scheduled for November 30, where production policies for 2024 will be decided. While Saudi Arabia advocates for reductions in production quotas, no consensus has been reached yet. The meeting's delay to November 30 stems from a disagreement involving African producers Nigeria and Angola. Additionally, a storm in the Black Sea region disrupted oil exports from Kazakhstan and Russia. Both Brent crude futures and US West Texas Intermediate (WTI) crude futures initially rose by over a dollar, turned negative, and then rebounded following the release of the pessimistic US inventory report. Market volatility is expected to persist until there is more clarity from OPEC.
Technical Analysis:
The price found support at the 0.236 Fib-Retracement taken from the high to the Low, an important ratio for us indicating the potential end of a bearish trend. The absolute Low is estimated above 77.766, making it a key level to watch for any bullish patterns. Additionally, this level aligns with the 100 EMA, adding significance to the bullish bias with a higher low above it. The price is anticipated to reach 87.877, suggesting a bias toward 91.008 over the Fib-Extension.
K
Trade closed: stop reached