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WTI steadies above $ 41 ahead of OPEC decision

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Dec 4, 2015.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

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    FXStreet (Mumbai) - The oil futures on Nymex clung to previous gains and edged slightly higher on Friday, as markets remain expectant of the OPEC policy decision on production levels.

    WTI holding above hourly 20-SMA support

    Currently, WTI rises 0.26% to 41.19, receding slightly from fresh session highs posted at 41.42. Oil prices remain elevated and hovered well within Thursday’s trading range as the oil traders preferred to remain on side-lines, awaiting the outcome from OPEC’s policy decision on oil markets and the crucial US jobs data.

    Moreover, sources related to the cartel told Reuters that there was only a little chance of Saudi Arabia making a formal proposal for OPEC output cuts, which keeps the prices buoyed.

    However, the gains remain in check as the latest internal OPEC report reviewed by WSJ, suggests that oversupply worries are likely to persist, even if OPEC cuts output levels today.

    OPEC members have convened a meeting in Vienna today, with markets expecting the oil cartel will keep its current output target at 30 million barrels per day (bpd).

    WTI Oil Technical Levels

    WTI oil has an immediate resistance which stands at 41.78 (Dec 3 high) above which gains could be extended to 42.60 (Nov 30 high). While to the downside, the immediate support is at 40.07 (Dec 3 low), below which the prices could drop to 39.84 (Dec 2 low).
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