WTI Oil Jumps Above $66.50 After OPEC+ Output Decision.
WTI rebounds above $66.50 as markets absorb OPEC+’s substantial oil production hike
FUNDAMENTAL OVERVIEW:
West Texas Intermediate (WTI) futures on NYMEX reversed early losses and rebounded toward $67.00 during Monday’s European session, despite OPEC+ announcing a larger-than-expected oil output increase starting in August.
The group agreed to raise collective production by 548,000 barrels per day (bpd), surpassing the previously scheduled 411,000 bpd increase for May through July, according to Bloomberg. While higher output typically weighs on oil prices, WTI found support from optimism that the United States may soon finalize trade deals with key partners.
Washington indicated on July 2 that it was close to reaching a trade agreement with India within 48 hours, though no official announcement has followed. A failure to secure such deals could dampen global oil demand, as reciprocal U.S. tariffs on more trade partners risk disrupting international commerce.
Meanwhile, President Donald Trump confirmed he would begin sending tariff letters on Monday to countries that have not reached trade agreements during the 90-day negotiation pause, further adding to market caution.
CRUDE OIL TECHNICAL ANALYSIS DAILY CHART:
Technical Overview:
Crude Oil is trading within an up channel.
Crude Oil is moving above all the Moving Averages (SMA).
The Relative Strength Index (RSI) is in the Buying Zone, while the Stochastic oscillator suggests a Positive trend.
Immediate Resistance level: 68.00
Immediate support level: 63.50
HOW TO TRADE CRUDE OIL
Crude oil prices recently spiked but were met with strong resistance, resulting in a rapid and significant drop that erased the initial gains. The price is currently testing a critical support level, which aligns with an important ascending trendline. If this support holds, we could see a fresh surge in buying, potentially driving crude oil prices higher again.