Commodity Market: US Crude Oil steadies after a two-day streak of gains as White House calls for output boost

Futures on US West Texas Intermediate Crude Oil traded mostly steady in Europe on Thursday following a two-day streak of gains, as the United States called upon major producers to ramp up output, which raised certain supply concerns.

Yesterday Biden’s administration urged the Organization of the Petroleum Exporting Countries and its allies (OPEC+) to ramp up oil production in order to cope with surging gasoline prices, which are perceived as a threat to global economic recovery.

In July, OPEC members agreed to increase oil production each month by 400,000 barrels per day, starting this month, until the remainder of the group’s record cuts of 10 million barrels per day from last year are phased out.

Still, concerns remain that the increase in production will probably not be sufficient to meet demand, especially as pandemic-related movement restrictions in Europe and the United States are relaxed.

“Crude prices are paring earlier gains that stemmed from President Biden’s plea to OPEC for more crude,” Edward Moya, senior analyst at OANDA, was quoted as saying by Reuters.

“The rally in oil prices is hitting a major roadblock in Asia as concerns grow China’s outlook is looking worse this month and that can’t be good for the demand outlook,” he added.

The White House also said that it had not urged US producers to increase output, which according to Price Futures Group senior analyst Phil Flynn, triggered a move higher in prices on Wednesday.

As of 8:25 GMT on Thursday WTI Crude Oil Futures were inching down 0.04% to trade at $69.22 per barrel, after earlier touching an intraday high at $69.51 per barrel. The latter has been the commodity’s strongest price level since August 6th ($70.18 per barrel). WTI Crude Oil Futures have retreated 6.56% so far in August, following a 0.65% gain in July.

At the same time, Brent Oil Futures were edging down 0.14% on the day to trade at $71.50 per barrel, after earlier touching an intraday high at $71.69 per barrel. The latter has been the black liquid’s strongest price level since August 6th ($72.41 per barrel). Brent Oil Futures have retreated 4.09% so far in August, following a 0.70% gain in July.

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

Central Pivot – $68.46
R1 – $70.24
R2 – $71.24
R3 – $73.02
R4 – $74.81

S1 – $67.46
S2 – $65.68
S3 – $64.68
S4 – $63.69

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

Central Pivot – $70.35
R1 – $71.73
R2 – $72.60
R3 – $73.98
R4 – $75.36

S1 – $69.48
S2 – $68.10
S3 – $67.23
S4 – $66.36