Crude oil price action on the WTI blend is being ramped up by comments from Mohammed Barkindo, OPEC’s Secretary General on possible production cuts in December. WTI crude oil price is up marginally above $57 on upbeat market sentiment and comments from OPEC’s Barkindo, who has hinted that a deeper cut in crude oil output could happen in the cartel’s December meeting.
Crude oil gained 0.75% on Monday after Iranian oil minister first provided hints of output cuts by the Organization of the Petroleum Exporting Countries (OPEC). Crude oil price is now 0.8% higher on the latest comments.
Positive trade news from the US-China front is also boosting crude oil prices, even as the weekly API crude oil stock report is being expected later today. Hopes are being raised that China could avoid new sanctions due in December, if the “phase-one” component of the trade deal is signed.
The American Petroleum Institute’s (API) weekly crude oil stock report is scheduled for release at 21:30 GMT later on Tuesday.
WTI Crude Technical Outlook
The daily chart shows that price has breached the 56.72 price (38.2% Fibonacci level) and is inching towards the channel’s return line. A decisive close above this level would target 58.70 (50% Fibonacci level).
Failure to sustain a break above 56.72 could reopen the door for a downside retest of 55.73 and 54.40 (June 2019 neckline), in that order.