WTI appreciates to near $78.50 ahead of looming US PCE inflation and OPEC+ meeting

FXStreet
Updated May 28, 2024 05:59
Mitrade
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Source: DepositPhotos

■WTI Oil price appreciates ahead of OPEC  meeting, where the group will discuss extending voluntary output cuts.

■An Israeli strike in the Gazan city of Rafah killed 45 people, sustaining geopolitical risks that favor higher crude Oil prices.

■Fed officials suggested maintaining higher rates that are negatively impacting the US economic outlook and reducing Oil demand.


West Texas Intermediate (WTI) Oil prices inch higher ahead of the Organization of the Petroleum Exporting Countries and allies including Russia (OPEC ) meeting scheduled for June 2, where group producers will discuss extending voluntary output cuts of 2.2 million barrels per day into the second half of 2024. WTI crude Oil prices trade around $78.70 per barrel during the Asian hours on Tuesday.


Oil prices are gaining support from escalated geopolitical tensions in the Middle East. Reuters reported on Sunday that an Israeli strike in the Gazan city of Rafah caused a fire that killed 45 people, triggering further outcry from international delegations and sustaining geopolitical risks that favor higher crude Oil prices. Additionally, reports of the death of an Egyptian soldier due to Israeli strikes near Rafah have added to the risk premium on crude Oil.


Traders are likely to await the Federal Reserve's preferred measure of inflation, the Personal Consumption Expenditures (PCE) Price Index data, which is due on Friday, to assess future US monetary policy. Last week, Fed officials tempered expectations for rate cuts, cautioning that the central bank still needs more evidence that inflation will eventually decline to its 2% annual target. Prolonged elevated interest rates are negatively impacting the US economic outlook and reducing Oil demand.


Reuters reported on Sunday, citing Iran’s Tasnim news agency, that an economic council led by Iran's interim president Mohammad Mokhber has approved a plan to increase the country's Oil output from 3.6 million barrels per day (bpd) to 4 million bpd.


WTI US OIL


Overview
Today last price 78.73
Today Daily Change 0.21
Today Daily Change % 0.27
Today daily open 78.52
 
Trends
Daily SMA20 78.52
Daily SMA50 81.43
Daily SMA100 78.78
Daily SMA200 79.57
 
Levels
Previous Daily High 78.65
Previous Daily Low 77.56
Previous Weekly High 80.06
Previous Weekly Low 76.04
Previous Monthly High 87.12
Previous Monthly Low 80.62
Daily Fibonacci 38.2% 78.23
Daily Fibonacci 61.8% 77.98
Daily Pivot Point S1 77.84
Daily Pivot Point S2 77.16
Daily Pivot Point S3 76.76
Daily Pivot Point R1 78.93
Daily Pivot Point R2 79.33
Daily Pivot Point R3 80.01

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