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The latest Organization of the Petroleum Exporting Countries  (OPEC) data relevant to the oil markets show that the cartel’s share of the global oil market has dropped to 30% in July, down from a peak of 35% seen in 2012.

Key Reasons:

“OPEC, Russia and other producers have been restraining supply for most of the period since Jan. 1, 2017. The alliance, known as OPEC+, in July renewed the pact until March 2020.

While helping to boost prices, OPEC’s market share has fallen steeply in the last two years. World supply has expanded by 2.7% to 98.7 million barrels per day, while OPEC crude output has fallen 8.4% to 29.6 million bpd.

Venezuela and Iran, under U.S. sanctions and being forced to curb shipments, have delivered the bulk of the cuts. Venezuelan supply was already in long-term decline before Washington tightened sanctions this year.”

WTI extends the bounce in Europe

Over the last hours, WTI (US oil futures on NYMEX), is seen extending its bounce from the Asian lows of $ 55.45, as the bulls to build gains above the 56 handle.

The bullish sentiment around the black gold can be mainly attributed to a bigger-than-expected drop in the US Crude Stocks, as reflected by the latest US Energy Information Administration (EIA) data published on Wednesday.

Further, the prices also find some support from upbeat Euro area Manufacturing PMI reports that eased concerns over a global economic slowdown and its impact on the energy demand outlook.

WTI Technical levels to watch