WTI Crude Daily Update for September 28, 2016

WTI crude oil prices hit a one-week lows of 44.20 before bouncing to 45.05, and then settling in near support at the 10-day moving average at 44.70. Volatility has been on the rise since Monday, as traders anticipate the oil meeting in Algiers. Tuesday’s sell-off was driven by reports that neither Saudi Arabia or Iran are willing to make any decisions regarding freezing oil production. It appears the next best chance of that happening will be at the official OPEC meeting in Vienna on November 30.  Traders await the Department of Energy’s Inventory report scheduled to be released on Wednesday at 10:30 AM ET.

Resistance is seen near last week’s highs at 46.55.  Momentum is neutral as the MACD (moving average convergence divergence) index prints near the zero index level with a flat trajectory. The RSI is printing a reading of 47, which is in the middle of the neutral range and reflects consolidation.