Commodity Market: US Crude Oil rebounds from three-week lows as investors eye OPEC+ meeting

Futures on US West Texas Intermediate Crude Oil rebounded from a three-week low on Thursday ahead of a meeting of the Organization of the Petroleum Exporting Countries and allies (OPEC+) later in the day, where producers are expected to reiterate plans to maintain monthly supply increases steady.

Oil was nursing losses earlier following news that Iran and six powers agreed to resume talks on November 29th to revive the 2015 nuclear deal in Vienna, which could lead to more oil exports from Tehran.

Yesterday both WTI and Brent registered their steepest daily declines since early August after the latest data from the US Energy Information Administration revealed a huge build in US crude inventories last week.

According to Citi analysts, OPEC+ members will probably continue with current policy, regardless of pressure from oil importers.

“The majority of OPEC+ members cannot raise production from current levels … while even Saudi Arabia has stressed the need to exercise caution on demand growth, given increased COVID instances, while boosting crude oil output,” an investor note from Citigroup stated.

As of 9:34 GMT on Thursday WTI Crude Oil Futures were advancing 0.90% to trade at $81.59 per barrel. During the previous trading session the black liquid slipped as low as $79.69 per barrel, which has been its weakest price level since October 13th ($79.42 per barrel). WTI Crude Oil Futures have retreated 2.50% so far in November, following an 11.38% surge in October.

At the same time, Brent Oil Futures were gaining 1.93% on the day to trade at $82.89 per barrel. Earlier in the trading session the commodity slipped as low as $81.10 per barrel, which has been its weakest price level since October 7th ($79.10 per barrel). Brent Oil Futures have retreated 0.90% so far in November, following a 6.75% gain in October.

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

Central Pivot – $81.21
R1 – $82.73
R2 – $84.60
R3 – $86.12
R4 – $87.64

S1 – $79.34
S2 – $77.82
S3 – $75.95
S4 – $74.08

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

Central Pivot – $82.21
R1 – $83.29
R2 – $85.27
R3 – $86.35
R4 – $87.44

S1 – $80.23
S2 – $79.15
S3 – $77.17
S4 – $75.20