FXEMPIRE
All
Corona Virus
Stay Safe, FollowGuidance
World
11,504,420Confirmed
535,641Deaths
6,523,815Recovered
Fetching Location Data…
Advertisement
Advertisement
James Hyerczyk
WTI Brent Crude Oil

U.S. West Texas Intermediate crude oil futures are trading flat at the mid-session on Thursday despite doubts over the ability of top crude producers to agree to extend output cuts and worries over a build in U.S. fuel inventories.

Apparently, Saudi Arabia and Russia want to extend cuts of 9.7 million barrels per day (bpd) that major producers agreed to in April. However, there are concerns over poor compliance by some producers. Meanwhile, Saudi Arabia, Kuwait and the United Arab Emirates are not planning to extend voluntary additional output cuts of 1.18 million bpd after June, indicating that crude supply could rise next month regardless of any OPEC+ decision.

At 17:29 GMT, July WTI crude oil is trading $37.32, up $0.03 or +0.08%.

A surge in gasoline and distillate stocks is also a major concern. The U.S. Energy Information Administration reported on Wednesday that gasoline stocks rose by 2.8 million barrels during the week-ending May 29 and distillate inventories jumped 9.9 million barrels, nearly quadruple expectations.

Daily July WTI Crude Oil

Daily Technical Analysis

The main trend is up according to the daily swing chart. A trade through $38.18 will signal a resumption of the uptrend. A move through $31.14 will change the main trend to down.

The main range is $54.86 to $17.27. Its retracement zone at $36.07 to $40.50 is controlling the longer-term direction of the market. WTI crude oil is currently trading inside this range.

Advertisement

Short-Term Outlook

Based on the early price action, the direction of the July WTI crude oil futures contract the rest of the session on Thursday is likely to be determined by trader reaction to a downtrending Gann angle at $36.61 and a 50% level at $36.07.

Bullish Outlook

A sustained move over $36.61 should provide support into the close on Thursday with $38.18 a potential upside target.

Bearish Outlook

A sustained move under $36.07 will indicate the selling pressure is getting stronger. This could trigger the start of a break into the next uptrending Gann angle currently at $33.64.

For a look at all of today’s economic events, check out our economic calendar.

Don't miss a thing!
Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Latest Articles

See All

Expand Your Knowledge

See All

Trade With A Regulated Broker

  • Your capital is at risk