- Crude's hopes for a higher future are looking rocky as supply continues to outstrip demand.
- The commodity is freezing in the charts as oversupply and risk-averse markets cool off buyers.
Crude oil has consolidated tightly into Friday's session and WTI is freezing at the 61.15 level.
Oil bulls have hesitated this week as reports continue to come out that suggest the oil supply pouring out of the US and other countries may not get eaten up by rising demand as quickly as many had hoped. The efforts by OPEC to stem the tide of oil oversupply are running into big roadblocks as oil continues to get pumped and produced at record rates, and the US is on pace to become the world's largest supplier of crude sometime this year or next, usurping Russia from the top spot.
On Thursday, the International Energy Agency (IEA) stated that the global oil supply increase in February of 700,000bpd from a year ago to brought the total supply up to 97.9M barrels per day. The IEA also noted that supply from producers outside of the OPEC led by the US is expected to grow by 1.8M bpd this year, compared to a 760,000bpd increase last year.
Crude Technicals
The strangle on in WTI crude is being held up by support from the 60.20 level, and a break in either direct5ion will run into immediate support at 60.85 or resistance stacked up from swing highs at 61.50 and 62.30, respectively.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD stays weak near 1.0650 ahead of Eurozone PMI data
EUR/USD remains on the back foot near 1.0650 in European trading on Tuesday. Resurgent US Dollar demand amid a cautious risk tone weighs on the pair. Investors stay wary ahead of the preliminary Eurozone and US business PMI data.
GBP/USD eases below 1.2350, UK PMIs eyed
GBP/USD is dropping below 1.2350 in the European session, as the US Dollar sees fresh buying interest on tepid risk sentiment. The further downside in the pair could remain capped, as traders await the UK PMI reports for fresh trading impetus.
Gold price flirts with $2,300 amid receding safe-haven demand, reduced Fed rate cut bets
Gold price (XAU/USD) remains under heavy selling pressure for the second straight day on Tuesday and languishes near its lowest level in over two weeks, around the $2,300 mark heading into the European session.
PENDLE price soars 10% after Arthur Hayes’ optimism on Pendle derivative exchange
Pendle is among the top performers in the cryptocurrency market today, posting double-digit gains. Its peers in the altcoin space are not as forthcoming even as the market enjoys bullish sentiment inspired by Bitcoin price.
Focus on April PMIs today
In the euro area, focus today will be on the euro area PMIs for April. The previous months' PMIs have shown a return of the two-speed economy with the service sector in expansionary territory and manufacturing sector stuck in contraction.