West Texas Intermediate (WTI) oil recovers some losses – However, bears still lurk

June 24, 2022 - 2 weeks ago
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West Texas Intermediate (WTI), the benchmark for New York-traded crude oil prices, rose slightly on Thursday after OPEC and allied producing countries, including Russia, will likely hold to their plan for accelerated output increases in August in hopes of easing crude prices and inflation as U.S. President Joe Biden plans to visit Saudi Arabia, news sources reported.

The group known as OPEC+ agreed at its last meeting on June 2 to boost output by 648,000 barrels a day in July, or 7% of global demand, and by the same amount in August, up from the initial plan to add 432,000 barrels per day a month over three months until September.

Meanwhile, official weekly estimates for U.S. oil inventories were scheduled to be released on Thursday, but technical problems have delayed those figures until next week, the U.S. Energy Information Administration said.

Based on the technical assessment, the Relative Strength Index (RSI) 3-daily ‘lookback’ indicator is negative and oversold, while the Moving Average Convergence Divergence (MACD) oscillator supports a negative signal. The ADX indicator holds a weak bearish trend.

Although a neutral view remains, the parameters are now assessed from $101.40-80 to $104.50-80 as much volatility is seen inside these parameters.

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