- WTI trades 0.46% higher on Tuesday but has pulled away from best levels.
- OPEC oil output has risen by around 1 million barrels per day in August.
WTI 4-hour chart
WTI is still trading higher on Tuesday despite the news that OPEC production is risen by 1 million barrels per day in August. The market had largely priced this in as the OPEC+ group had communicated this at their last meeting. In terms of specifics, 24.27 million bpd on average in August and this is from a three-decade low which was achieved in June.
Looking at the price chart, the last 4-hour candle has taken the price to just above USD 43 per barrel. The next major support level is at the red line close to USD 42.50 per barrel. Beyond that, there is an upward sloping trendline marked in black that could also provide some support.
On the topside, the trend would continue if the high of USD 43.86 per barrel is broken. Rising COVID-19 case numbers in major nations could be a major issue but the fact that China is firmly back on track is a positive step.
The indicators are very mixed at the moment. The MACD histogram is red and very thin but the signal lines are still above zero. The Relative Strength Index has recently dipped under the 50 zone but the main bearish confirmation would come if the aforementioned support level breaks. The trend is still pretty much an uptrend and this could just be a short term blip.
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