WTI Drops Below $74.00 As OPEC+ Plans To Ease Oil Production Cuts


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  • WTI price lost ground as OPEC+ intends to phase out production cuts of 2.2 million barrels per day over 2025.
  • The US is purchasing an additional 3 million barrels of Oil for the country’s Strategic Petroleum Reserve.
  • Oil prices may struggle further due to the expectations of the Fed maintaining higher rates for longer.
  • West Texas Intermediate (WTI) Oil price continues to decline for the fifth consecutive day, trading around $73.90 per barrel during the Asian session on Tuesday. This drop in crude Oil prices is attributed to the Organization of the Petroleum Exporting Countries and allies led by Russia, known as OPEC+, announcing a gradual plan to ease some of their Oil production cuts.OPEC+ plans to phase out voluntary production cuts of 2.2 million barrels per day (bpd) over the next year, starting in October. By December, over 500,000 bpd are expected to re-enter the market, with a total of 1.8 million bpd returning by June 2025.According to a Reuters report, the United States is purchasing an additional 3 million barrels of Oil for the country’s Strategic Petroleum Reserve (SPR), as announced by the Department of Energy on Monday. This move is part of a gradual replenishment effort following the largest sale ever in 2022. US President Joe Biden had ordered the sale of 180 million barrels over six months in 2022 to control fuel prices after Russia’s invasion of Ukraine.The latest US Personal Consumption Expenditure (PCE) data indicated that price pressures eased in April. Despite this, the report did not prompt a rate cut from the Federal Reserve (Fed), suggesting that the central bank may need more time to achieve its inflation goals. The higher interest rates are negatively impacting the US economic outlook and dampening the demand for Oil.

    WTI US OIL
     

    OVERVIEW Today last price 73.88 Today Daily Change -0.04 Today Daily Change % -0.05 Today daily open 73.92

     

    TRENDS Daily SMA20 78.15 Daily SMA50 81.03 Daily SMA100 79.06 Daily SMA200 79.53

     

    LEVELS Previous Daily High 77.36 Previous Daily Low 73.92 Previous Weekly High 80.41 Previous Weekly Low 76.52 Previous Monthly High 81.25 Previous Monthly Low 76.04 Daily Fibonacci 38.2% 75.23 Daily Fibonacci 61.8% 76.04 Daily Pivot Point S1 72.77 Daily Pivot Point S2 71.62 Daily Pivot Point S3 69.33 Daily Pivot Point R1 76.21 Daily Pivot Point R2 78.51 Daily Pivot Point R3 79.66

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