Forex Marketz Daily Forex News – Fully Markets Update
The price of US WTI crude oil took a tumble during the Asian trade hours Monday morning. News from the oil tanker magnate, Petro Logistics SA said that the Organization of the Petroleum Exporting Countries (OPEC) output for oil will exceed 33 million barrels per day in July. This is the largest print for output this year. That fueled investor skepticism about the ability of the OPEC effort to curb production to reduce the ever increasing global supply glut and boost prices is falling far short of its stated objective. This is putting selling pressure on oil prices.
Oil investors will now turn their attention towards to St Petersburg, Russia, where the representatives of major crude oil producers, OPEC and non-members, who are part of the established coordinated output reduction scheme are meeting to discuss the progress to reduce the global supply rut and reducing it. Prices, for the WTI contracts may fall further if comments from St Petersburg maintain the status quo. Especially if cartel and non-cartel members fail to signal that deeper cuts are a possibility.
Crude Oil Technical Analysis
Let’s look into today’s daily technical analysis of the black gold. WTI futures prices recoiled back from the resistance congestion zone running from $47.10 per barrel to the July 4 high at $47.30 per barrel. Should the price action, on a daily closing basis, close below the technical support layer at 45.30, we will the see a test of the May 5 price low at $43.80 per barrel.
The alternative analysis notes a break back above 47.30 challenging the next upside barrier lining up at 48.65.
