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WTI gains ground above the $81.00 mark on a weaker US Dollar

Source Fxstreet

WTI gains ground near 81.00, adding 0.37% on the day.
OPEC+ voluntary production cuts and the Middle East geopolitical tensions might lift WTI prices.
Weaker economic growth in major countries might drag WTI prices lower.

Western Texas Intermediate (WTI), the US crude oil benchmark, is trading around $81.00 on Monday. WTI prices edge higher amid the softer US Dollar (USD) and the revised demand outlook from the International Energy Agency (IEA).

The IEA forecast significantly less global oil production for the remainder of 2024 following the announcement that OPEC+ will extend the existing voluntary production cuts through the second quarter of 2024. The draw on stockpiles throughout 2024 might boost WTI prices. Furthermore, the uncertainties surrounding geopolitical tensions in the Middle East might increase prices further as many ships are rerouting to avoid the Red Sea, which lengthens the trip and increases costs.

On the other hand, weaker economic growth in major countries might lead to less oil demand and drag WTI prices lower. Market players will keep an eye on the US Gross Domestic Product Annualized (GDP) for the fourth quarter (Q4), due on Thursday. The annual US GDP growth numbers are projected to remain steady at 3.2% in the fourth quarter.

The Federal Reserve (Fed) held rates steady at 5.25–5.50% for a fifth consecutive meeting last week. The Fed maintained its outlook for median dot for 2024 and signalled three quarter-point rate cuts this year. However, any hawkish comments and the higher-for-longer rate narrative from the central bank might cap the upside of the WTI prices as it translates to less demand for oil with higher costs.

WTI US OIL

Overview
Today last price	81
Today Daily Change	0.30
Today Daily Change %	0.37
Today daily open	80.7

Trends
Daily SMA20	79.26
Daily SMA50	77.08
Daily SMA100	75.54
Daily SMA200	78.41

Levels
Previous Daily High	81.34
Previous Daily Low	80.32
Previous Weekly High	83.05
Previous Weekly Low	80.24
Previous Monthly High	79.27
Previous Monthly Low	71.46
Daily Fibonacci 38.2%	80.71
Daily Fibonacci 61.8%	80.95
Daily Pivot Point S1	80.23
Daily Pivot Point S2	79.76
Daily Pivot Point S3	79.21
Daily Pivot Point R1	81.25
Daily Pivot Point R2	81.81
Daily Pivot Point R3	82.28

Disclaimer: For information purposes only. Past performance is not indicative of future results.

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