WTI Crude Slips On Tuesday As U.S. Crude Output Increases – Outlook Still Positive
WTI crude prices dipped on Tuesday, extending losses from the previous session, as the inexorable rise in U.S. crude output weighed on markets.
U.S. West Texas Intermediate (WTI) crude futures were at $61.18 a barrel at 0747 GMT, down 18 cents, or 0.3 percent, from their previous close. Brent crude futures were at $64.77 per barrel, down 18 cents, or 0.3 percent.
Healthy demand and ongoing supply restraint by a group of producers led by the Organization of the Petroleum Exporting Countries (OPEC) and Russia, however, are preventing further price falls.
U.S. production is expected to rise above 11 million bpd by late 2018, taking the top spot from Russia, according to the International Energy Agency (IEA).
“Oil prices pulled back yesterday as basic fundamentals of oversupply continued to worry the markets,” said Sukrit Vijayakar, director of energy consultancy Trifecta in a note.
On technical charts, WTI crude is trading sideways and below the 9 day, 20 day, and 50 day. The RSI at 47.19 and the MACD is ready to make a positive crossover above the signal line. The market is expected to trade in the positive zone.
Buy stop at 61.30, Take profit at 61.66, Stop loss at 61.10