- WTI technicals lean bearish and the 21-4hr SMA is key.
- Cautious bulls were somewhat concerned that global oil producers could bump up production more than investors expected.
WTI is currently trading at $72.65bbls having hit a high of $73.29bbls and is up from a low of $71.87bbls, more or less in the consolidation of Friday’s best finish since November’s 2014.
WTI has been performing well on a weekly, monthly and quarterly basis, underpinned by the continued efforts by the Organization of the Petroleum Exporting Countries to reduce production.
However, there was an opening gap on Monday as traders walked in to take on the second half of 2018 while cautious bulls were somewhat concerned that global oil producers could bump up production more than investors expected.
Twitter-happy Trump Tweets again:
Also, a weekend tweet from President Donald Trump talked about a big potential production increase from Saudi Arabia.
However, the White House said that King Salman of Saudi Arabia had told the president that his country would increase oil production “maybe up to 2,000,0000 barrels”. Also, a senior Saudi Arabia official told The Wall Street Journal on Saturday that no specific promise had been made over production.
WTI levels
WTI’s opening bearish gap has tested the bull’s commitments but the price remains above ascending support on the hourly time frame although technicals lean bearish with RSI pulling a negative bias. A break of the 21-4hr SMA opens space to 71.55. 70.05 guards 69.02. In a continuation, above 72.80 the price can target 73.64 recent highs ahead of 80.95.
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