According to the latest Reuters survey, Saudi Arabia is expected to cut crude oil prices for all crude grades it sells to Asia in May. What impact will this have on investors? Learn this from the 2 April WTI Crude Oil Price Technical Outlook.
2 April, GKFX – WTI (oil futures on NYMEX) stalled its recovery mode from six-day troughs of $ 64.16, as the bulls entered a consolidative mode amid a lack of fresh catalysts and Easter holiday-induced light trading.
Will the renewed upside hold ahead of the US ISM data?
Over the last hour, the barrel of WTI is seen breaking higher from the tight range above the $ 65 mark, despite looming concerns over rising Russian output levels, as upbeat US rigs count data combined with broad-based US dollar weakness continue to offer the much-need support to the prices.
Baker & Hughes oil fields Services Company showed in its latest data released Friday, the drillers there cut seven oil rigs in the week to March 29, bringing the total count down to 797. It was the first time in three weeks that the rig-count fell, according to Reuters.
Saudi Arabia seen cutting May crude prices to Asia
However, further upside looks doubtful, as the latest Reuters survey, citing that Saud Arabia is expected to cut crude oil prices to Asia, will weigh negatively on the investors’ sentiment while weekend’s news about Iraqi cabinet having approved raising crude oil output capacity could also keep the gains in check.
Focus now shifts towards the US weekly crude supplies data for fresh direction on the black gold.
2 April WTI Crude Oil Price Technical Outlook
Flavio Tosti, Analyst at FXStreet, noted:
“Bulls’ initial target is $65.50, followed by the $66 handle; further up, $66.66 is the high of 2018. If the bulls can’t break above $65.50 supply zone in the next sessions, the pullback down may continue and $63.81 swing low becomes the support; if this level gets successfully broken, the next scaling point is seen at $62.30 previous demand zone.
The long term-trend on oil is bullish but market participants will need to decide what happens after the double top made on March, 26.“
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