OPEC Uncertainty Caps Oil Gains
02 Jun 2023
OPEC uncertainty limits gains as oil increases on optimism about the debt ceiling.
Despite concern ahead of an OPEC meeting this weekend, oil prices jumped in Asian trade on Friday as markets celebrated the passage of a bill to raise the U.S. debt ceiling and prevent a default.
Bipartisan legislation to raise the government spending ceiling and avert a potentially disastrous default was approved by the U.S. Senate. President Joe Biden is about to sign the legislation into law, putting an important source of market angst to rest.
By 00:16 ET (04:16 GMT), West Texas Intermediate crude futures increased 0.6% to $70.53 a barrel, while Brent Oil futures increased 0.6% to $74.73 a barrel.
However, bigger advances were constrained ahead of a meeting between OPEC+ members this Sunday due to uncertainties over the organization’s plans for future output cutbacks.
Saudi Arabian and Russian ministers gave conflicting signals about their intentions to reduce production ahead of the summit.
Additionally, surprisingly rising U.S. oil stocks over the previous week indicate a high level of supply and weakening demand even as the summer travel season begins.
Now all eyes are on nonfarm payrolls data, which is due later today and is anticipated to give additional hints about how the Fed will approach interest rates at a meeting later this month.
WTI CRUDE OIL TECHNICAL ANALYSIS DAILY CHART:
WTI Crude Oil is trading in the down channel.
WTI Crude Oil is currently trading above 5&20 SMA.
RSI is in buying zone which suggests bullishness and Stochastic is suggesting up trend.
WTI Crude Oil resistance is at 71.29 & its immediate support level is 69.98
HOW TO TRADE WTI CRUDE OIL
WTI Crude oil is moving in a downward direction, the price is constantly attempting to rise upward. It has broken the previous day’s high and is currently trading at a key resistance level; if this level is broken, further upside is expected.