WTI Crude extends Gains on Compliance with Output cuts – Technical Outlook Cautious
Feb, 02nd 13:28
WTI crude is trading soft on Friday after a two day rally. A survey showed strong compliance with output cuts by OPEC and others, including Russia, offsetting concerns about surging U.S. production.
Brent futures, the global benchmark, were up 17 cents, or 0.24 percent, at $69.82 a barrel by 0842 GMT.U.S. West Texas Intermediate (WTI) crude was up 28 cents, or 0.43 percent, at $66.08 a barrel.
OPEC pumped 32.4 million barrels per day (bpd) in January, the survey found, up 100,000 bpd from December. Last month’s total was revised down by 110,000 bpd to the lowest since April 2017.
U.S. crude output surpassed 10 million bpd in November for the first time since 1970, the Energy Information Administration said this week.
Analysts and traders have recently warned that U.S. shale oil producers could ramp up production as they look to take advantage of higher prices, potentially derailing OPEC’s effort to curb excess supply.
On the technical charts WTI crude has made higher highs and higher lows. Currently the market is trading in the negative zone, but above all the moving averages (9 day, 20 day, 50 day, 100 day and 200 day). The RSI is at 66.43 and the MACD is currently below the signal line. The negative bias is dominating on Friday.
Buy digital Put options between 65.80 and 65.30, valid until 23:00 GMT February 2nd, 2018