Join our community of traders FOR FREE!

  • Learn
  • Improve yourself
  • Get Rewards
Learn More

Futures on US West Texas Intermediate Crude Oil extended losses on Thursday, as the market braced for increased supply after a compromise between key OPEC producers. Additionally, fuel inventories in the United States, the largest oil consumer globally, increased, while raising demand concerns.

Yesterday both WTI and Brent plunged more than 2% following a report by Reuters, stating that Saudi Arabia and the UAE reached a compromise which could result in a deal to supply more crude oil to a tight market.

Negotiations between members of the Organization of the Petroleum Exporting Countries and allies, a group known as OPEC+, fell apart earlier in July after the UAE did not agree on an extension of the supply cut deal beyond April 2022.

“The deal will take some time to get finalized, but it seems the UAE will be allowed to produce more output next year,” OANDA analyst Edward Moya wrote in a client note, cited by Reuters.

“It seems OPEC+ will shortly have a plan to raise output and that is welcomed news as surging demand had oil market getting too tight.”

Meanwhile, an official report by the US Energy Information Administration showed on Wednesday that crude oil inventories, excluding the Strategic Petroleum Reserve (SPR), had decreased by 7.897 million barrels during the week ended on July 9th, or at a much sharper rate compared to what analysts on average had anticipated – a drop by 4.359 million barrels. It has been an eighth consecutive weekly decline and also the most considerable one since early May.

On the other hand, US gasoline and diesel stocks rose last week despite lower refinery utilization rates, which put additional downward pressure on prices.

As of 8:33 GMT on Thursday WTI Crude Oil Futures were retreating 1.90% to trade at $71.74 per barrel, after earlier touching an intraday low at $71.68 per barrel. The latter has been the black liquid’s weakest price level since July 8th ($70.76 per barrel). WTI Crude Oil Futures have retreated 2.41% so far in July, following a 10.78% surge in June.

At the same time, Brent Oil Futures were losing 0.55% on the day to trade at $74.11 per barrel, after earlier touching an intraday low at $73.52 per barrel. The latter has been the commodity’s weakest price level since July 8th ($72.14 per barrel). Brent Oil Futures have retreated 0.80% so far in July, following a 7.49% surge in June.

Daily Pivot Levels (traditional method of calculation) – WTI Crude Oil Futures

Central Pivot – $73.59
R1 – $74.98
R2 – $76.82
R3 – $78.21
R4 – $79.59

S1 – $71.75
S2 – $70.36
S3 – $68.52
S4 – $66.67

Daily Pivot Levels (traditional method of calculation) – Brent Oil Futures

Central Pivot – $75.01
R1 – $76.19
R2 – $77.87
R3 – $79.05
R4 – $80.24

S1 – $73.33
S2 – $72.15
S3 – $70.47
S4 – $68.80

TradingPedia.com is a financial media specialized in providing daily news and education covering Forex, equities and commodities. Our academies for traders cover Forex, Price Action and Social Trading.

Related News

  • Sony Corp share price up, investigations continue as it deals with breach aftermathSony Corp share price up, investigations continue as it deals with breach aftermath Sony Entertainment Pictures was hacked last month by a group called Guardians of Peace, who brought down the computer network of the PS-maker, illegally released five movie titles and made public sensitive personnel data.Sony criticized […]
  • Euro Area reports EUR 15 billion trade surplus in AprilEuro Area reports EUR 15 billion trade surplus in April The Euro Area has reported a trade surplus of EUR 15 billion in April, compared with a deficit of EUR 11.1 billion in April last year.The latest figure fell short of market consensus of EUR 20 billion.The bloc's total imports went […]
  • Forex Market: USD/ILS daily trading forecastForex Market: USD/ILS daily trading forecast Yesterday’s trade saw USD/ILS within the range of 3.7208-3.7498. The pair closed at 3.7413, gaining 0.17% on a daily basis.At 7:13 GMT today USD/ILS was up 0.13% for the day to trade at 3.7460. The pair touched a daily high at 3.7475 at […]
  • Forex Market: GBP/CHF daily forecastForex Market: GBP/CHF daily forecast During yesterday’s trading session GBP/CHF traded within the range of 1.4988-1.5116 and closed at 1.5096.At 6:48 GMT today GBP/CHF was gaining 0.01% for the day to trade at 1.5097. The pair touched a daily high at 1.5107 at 6:00 […]
  • LinkedIn to increase finances with $1 billion stock saleLinkedIn to increase finances with $1 billion stock sale LinkedIn plans to sell $1 billion worth of stock in a secondary offering, two years after one of the most successful social-media initial public offerings to date and having seen its valuation more than double so far in 2013.The company […]
  • Alcatel-Lucent pressed by French government, unions to diminish job cutsAlcatel-Lucent pressed by French government, unions to diminish job cuts Earlier this month struggling telecom-gear supplier Alcatel-Lucent said it will lay off 15% of its global workforce. After the statement company made a reaction from French government officials and labor unions were expected to oppose the cost […]