WTI trades above $77.00 as OPEC+ agreed to extend its output cuts into 2025

FXStreet
Updated Jun 3, 2024 01:33
Mitrade
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Source: DepositPhotos

■  WTI edges higher as OPEC  continues its oil output cuts of 3.66 million barrels per day into 2025.

■  Oil prices could face pressure as Fed officials suggested maintaining restrictive monetary policy for now.

■  Israeli Prime Minister Benjamin Netanyahu's administration accepted US President Joe Biden's proposal for a Gaza cease-fire on Sunday.


West Texas Intermediate (WTI Oil price grapples to halt its three-day losing streak, trading around $77.10 per barrel during the Asian hours on Monday. Reuters reported on Sunday that the Organization of the Petroleum Exporting Countries and its allies, including Russia (OPEC ), agreed to extend its Oil output cuts into 2025 to support the prices amid sluggish demand growth. OPEC  decided to prolong the cuts of 3.66 million barrels per day (bpd) until the end of 2025 and extend the cuts of 2.2 million bpd by three months until September 2024.


On Friday, 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 United States's (US) economic outlook and dampening the demand for liquid Gold.


Last week, Federal Reserve (Fed) officials communicated that the central bank might maintain its restrictive policy for an extended period to achieve its 2% inflation target. Atlanta Fed President Raphael Bostic remarked in an interview with Fox Business that the inflation outlook will decline very slowly and emphasized the need for the Fed to remain in a restrictive stance. Additionally, New York Fed President John Williams stated that although inflation is still too high, he believes the current Fed policy is appropriately positioned to gradually bring price growth back to the Fed's target.


Israeli Prime Minister Benjamin Netanyahu's administration reluctantly accepted US President Joe Biden's proposal for a Gaza cease-fire on Sunday. This decision comes amid ongoing attacks in Rafah following intense Israeli airstrikes over the weekend, according to the BBC. Investors will closely watch the developments in these geopolitical tensions, as any signs of escalating risks could potentially drive up crude Oil prices.


WTI US OIL


Overview
Today last price 77.15
Today Daily Change 0.15
Today Daily Change % 0.19
Today daily open 77
 
Trends
Daily SMA20 78.38
Daily SMA50 81.17
Daily SMA100 79.05
Daily SMA200 79.56
 
Levels
Previous Daily High 78.45
Previous Daily Low 76.52
Previous Weekly High 80.41
Previous Weekly Low 76.52
Previous Monthly High 81.25
Previous Monthly Low 76.04
Daily Fibonacci 38.2% 77.25
Daily Fibonacci 61.8% 77.71
Daily Pivot Point S1 76.19
Daily Pivot Point S2 75.39
Daily Pivot Point S3 74.26
Daily Pivot Point R1 78.12
Daily Pivot Point R2 79.25
Daily Pivot Point R3 80.05

* The content presented above, whether from a third party or not, is considered as general advice only.  This article should not be construed as containing investment advice, investment recommendations, an offer of or solicitation for any transactions in financial instruments.

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