WTI crude oil price is trading within a $2.21 range ahead of the much-anticipated OPEC meeting. Its CFDs have found support at 46.44 and bounced off resistance at 48.23 in yesterday’s trading. As of this writing, WTI crude oil price is trading at 47.32.
Leaders of the Organization of Petroleum Exporting Countries, also known as OPEC, are meeting in Vienna today. The bloc is responsible for about 30% of the world’s supply of oil and has often had significant impact on the price of oil. It is widely expected that they would announce production cuts in an effort to stabilize crude oil price. The commodity has lost about 20% of its value since the coronavirus outbreak which dampened demand for the commodity.
Saudi Arabia has announced that it wants the bloc to reduce production by over 1 million barrels per day. Market participants will be closely watching how responsive other countries are to more production cuts. In the past, we have seen WTI crude oil price fall despite the OPEC lowering the supply of oil because other member countries do not commit to lower quotas.
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WTI Crude Oil Price Outlook
On the daily time frame, we can see that crude oil price has recouped some of its losses back to the 38.2% Fib level (when you draw the Fibonacci retracement tool from the high of February 20 to the low of March 2). It has already made reversal candlesticks which could mean that crude oil price could soon fall. Near-term support is around 43.40 where the commodity made lows on March 2.
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On the other hand, the 4-hour time frame suggests a more bullish bias for crude oil price. The commodity has recently formed lower highs and higher lows after a rally. Consequently, a bullish pennant has formed. A bullish close above the high of March 3 at 48.46 could trigger a rally to resistance at 50.00 where the 100 SMA coincides with the 61.8% Fib level and previous lows. If resistance does not hold, the next ceiling could be at 51.60 where the 200 SMA is.More content
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