Forex Marketz Daily Forex News – Fully Markets Update
Looking at the U.S. West Texas Intermediate (WTI) spot crude oil futures contract on the above daily MT 4 price chart, the spot contract has fallen to $45 per barrel after the Organization for Petroleum Export Organization (OPEC) and non-member allied nations led by Russia have delayed any decision on extending supply curbs until Thursday.
After the OPEC + cartel announced this decision to delay a vote to continue with supply curbs, the price of the WTI crude oil contract fell to a one week low price point. Buyers of oil remain hopeful that a deal will happen. There is some discord within the group as Saudi Arabia has threatened to resign as co-chair of the group.
The Joint Ministerial Monitoring Committee (JMMC), of the Organization of the Petroleum Exporting Countries (OPEC) members say that they need another day to confer with non-members like Russia. There are some member nations that want to increase output. Once they have an agreement, they will meet with all member nations of the OPEC + group on Thursday to hammer out an agreement.
Another factor effecting the WTI crude oil contract are the rising coronavirus (Covid-19) cases in the United States. The number of new cases is quite alarming and could have negative impact on the U.S. economic recovery. There is now talk of a double dip recession in the United States. This is despite the talk of a vaccine being rolled out.
Daily WTI Crude Oil Technical Analysis
Looking at the above price action chart, the technical indicators are above the mid-lines. The 14 day MACD histogram is signaling possible weakness ahead and the 14 day relative strength index (RSI) is near seventy (70) signaling overbought price conditions for the spot oil contract.
A daily close below the August high price point at $43.10 per barrel opens the door to challenge the next downside barrier in play at $42.50 per barrel. There is also a minor level of support in play at $44.53 per barrel and another lining up at $43.85 per barrel.
On the upside, a daily close above $45.90 per barrel opens the door to $46.30 barrel. The next upside barrier lines up at $47.25 per barrel.
