WTI crude oil price CFDs is trading more than 3% lower as US shale producers and OPEC fail to reach an agreement on production. As of this writing, the spot price for WTI crude oil is trading below its 2002 lows at 22.66.
On Friday last week, OPEC secretary-general Mahammed Barkindo invited Texas Railroad Commissioner Ryan Sitton to the organization’s meeting. The latter was founded in 1891 which was originally tasked to oversee railways. In the past few decades, the Texas Railroad Commission has been in-charge of determining oil production in Texas.
The news sparked hopes that the two parties would come to an agreement on limiting production which could support crude oil price. After the breakdown of OPEC+ wherein Saudi Arabia and Russia failed to agree on supply cuts, the WTI crude oil price has lost close to 50% of its value. This followed after Sitton, one of the three commissioners of the organization, called to reduce production for the first time since 1970.
However, it would seem that an agreement did not materialize. In a statement, Sitton said that it will be up to President Donald Trump to decide on production cuts. He did assure that the organization will follow his directive.
WTI Crude Oil Price Outlook
On the hourly time frame, we can see that WTI crude oil price has bounced off last week’s lows at $20.94. If there are enough buyers at this level, we could soon see the commodity rise to around $25.40 where the commodity could face resistance at the 100 SMA. A break of this price could even mean that the next ceiling for WTI crude oil price will be at $27.96 where it topped on March 20.
Alternatively, the reversal candlesticks on the 1-hour chart could mean that there are still sellers in the market. It may suggest that the commodity could still fall to last week’s lows.