WTI rises amid OPEC+ meeting speculations, weaker US Dollar
- WTI Crude Oil climbs over 1%, trading around $77.65, rebounding from a low of $75.74.
- The rise in Oil prices is influenced by a delayed OPEC+ meeting, sparking speculations of further production cuts.
- Expectations of extended production cuts by Saudi Arabia and Russia into the first quarter of 2024 also drive higher Oil prices.
The US Crude Oil benchmark, also known as West Texas Intermediate (WTI), advances more than 1% on Wednesday as attention turned to a delayed OPEC+ meeting. That, alongside a softer US Dollar (USD) due to dovish remarks by Fed’s Governor Christopher Waller, a former “hawk,” weighed on the buck. At the time of writing, WTI is trading at $77.65 after bouncing off daily lows of $75.74.
West Texas Intermediate (WTI) sees an uptick as market anticipates OPEC+ decisions and reacts to a dovish US Federal Reserve stance
Oil is trading positively even though the US weekly inventory report showed increased Crude Oil inventories. In the meantime, the US Dollar Index (DXY) is dropping 0.07%, exchanging hands at 102.66, unable to gather traction after the US economy grew faster than expected.
In the meantime, the OPEC+ delayed meeting keeps investors nervous on speculations for further crude Oil production cuts. The producer group noted that Oil supply cuts and a rollover of existing curbs is possible.
Sources cited by Reuters noted that "Prices are going to remain volatile until we get greater clarity out of OPEC."
The rise in Oil prices is due to expectations that Saudi Arabia and Russia will extend their production cuts of 1.3 million barrels to the first quarter of 2024. The US Energy Information Administration (EIA) reported a surprise build in US crude Oil and distillate fuel stocks last week, indicating weak demand.
A storm in the Black Sea is another factor underpinning WTI price, with supply expected to take a toll of up to 2 million barrels per day (bpd) unable to be delivered due to weather conditions.
Kazakhstan's largest Oilfields are cutting combined daily Oil output by 56% from November 27, the Kazakh energy ministry said.
WTI Technical Levels