Forex Marketz Daily Forex News – Fully Markets Update
The price of light sweet crude oil, or US WTI crude shot higher this week. Comments from the de facto leader of OPEC, Saudi Arabia, were watched as the oil producing nation stressed its commitment to OPEC’s coordinated production cut scheme. Saudi Arabia pledged to reduce shipments by a further 10 percent starting in September. The comments echoed their earlier remarks. Oil got a further boost from API inventory data that showed that US crude oil inventory lost a large 10.2 million barrels last week.
The official EIA inventory release is on today’s economic calendar. Investors are expecting an outflow of 3.13 million barrels. An outcome closer to the API release, from yesterday, may boost prices further. However, today’s data will compete for influence with another Department of Energy release. This is their monthly report on supply trends. If that indicates a surge in US output, oil prices will face renewed selling pressure.
Crude Oil Technical Analysis
Let’s look into today’s oil technical analysis. The price of WTI light sweet rose through the resistance congestion layers that ran to the July 4 high. This area was at 47.10 to $47.30 per barrel. Price action is now challenging 48.65. A daily close above this upside barrier challenges the next upside barrier lining up at $50.20 per barrel.
The alternative technical analysis notes a downside barrier lining up at 47.10. A break below this first support layer challenges the next downside barrier at $45.31 per barrel.
