WTI Crude Slips Lower, Support Continue Due to Production Cut – Outlook Cautious
WTI crude split on Tuesday, with U.S. crude still carrying momentum from Friday’s gains due to a holiday on Monday while international Brent prices eased.
U.S. West Texas Intermediate (WTI) crude futures were at $62.31 a barrel at 0740 GMT, up 63 cents, or 1 percent, from their last settlement. Brent crude futures were at $65.54 per barrel, down 13 cents, or 0.2 percent, from Monday’s close.
A holiday in the United States on Monday meant that Friday’s gains were being pushed into Tuesday for WTI, traders said.
Ongoing supply reductions from Canada to the United States due to pipeline reductions were supporting WTI, traders said.
Overall, oil markets remain well supported due to supply restraint by the Organization of the Petroleum Exporting Countries (OPEC), which started last year in order to draw down excess global inventories.
“OPEC and Russia continue to support the production cuts that are due to expire at the end of this year, and they assure markets that there will be an orderly ramp-up of production once the cuts expire,” said William O’Loughlin, an analyst at Rivkin Securities.
On the technical charts, WTI crude is trading sideways. The market is trading above all the moving averages (9 day, 20 day, 50 day, 100 day and 200 day). The RSI is at 61.73 and the MACD is below the signal line.
Sell stop at 62.28, Take profit at 61.90, Stop loss at 62.45