انتشار: شهریور 07، 1402
بروزرسانی: 27 خرداد 1404

Oil breaks higher as hurricane hits US and OPEC+ considers more supply cuts

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• Oil (WTI) sees a boost in its price with hurricane Adalia and OPEC+ production cuts.\xa0
• US Dollar strength tops out and could start to abate as risk-on sentiment slows demand for the Greenback.
• This evening the American Petroleum Institute is due to print its weekly numbers.\xa0

On the upside, $81.68, Monday’s high, is the one to beat in order to trigger a small uptrend. Should WTI continue to rally and break that red descending trendline, more new highs will come into play. In order to print a fresh monthly high, the peak of mid-August at $84.32 is the target when demand takes over and supply cannot follow suit.\xa0

WTI US OIL (Daily Chart)

The Oil price is pushing firmly higher now and could be entering a bull run phase. Line in the sand will be the red descending trend line, currently at $80.55. Should the black gold be able to close above that red descnend trend line, expect that to be a clear bullish signal and could point to more bullish moves in the coming days.\xa0

Oil prices are moving higher this Tuesday as the energy complex this week is back in graces of investors and traders.\xa0Next to Crude Oil prices rising, Natural Gas prices were on a tear as well on Monday. With hurricane Adalia set to hit Florida and Georgia soon, oil distribution for the US southeast could get disrupted and have repercussions for the more northern states.\xa0

OPEC (Organization of the Petroleum Exporting Countries) is a group of 13 Oil-producing nations who collectively decide production quotas for member countries at twice-yearly meetings. Their decisions often impact WTI Oil prices. When OPEC decides to lower quotas, it can tighten supply, pushing up Oil prices. When OPEC increases production, it has the opposite effect. OPEC+ refers to an expanded group that includes ten extra non-OPEC members, the most notable of which is Russia.