Crude oil is trading flat so far for Thursday, with WTI cycling around 68/barrel. How is OPEC and Russia impacting oil prices at the moment? This 31 May WTI Crude Oil Price Technical Forecast from GKFX analysts will show.
31 May, GKFX – Oil began declining recently after news broke that Russia and OPEC leader Saudi Arabia are mulling over a production increase now that global supplies have begun to wind down to manageable levels.
OPEC, Russia crude oil production impact
Russia and OPEC tightly constrained oil supplies by 1.8 million barrels per day in an effort to combat a supply glut flowing out of the US. With the global stock overhang dealt with, Russia and OPEC are now considering lifting oil production by a million barrels per day in an effort to bring down oil prices. The news had the intended effect, bringing crude lower as WTI fell from a multi-year high of 72.83.
Risk appetite in global markets swooned this week following news that Italy’s newly-elected coalition failed to form a government, bringing fears to the markets that Italy would undergo a fresh election, bringing along with it fears that Italy may resolve to leave the Eurozone.
Fears ebbed on Wednesday and risk assets jumped higher, including oil. The climb was halted after American Petroleum Institute figures showed a surprise increase in US oil stocks of a million barrels, clamping down on oil’s risk recovery and keeping WTI near the 68.00 level.
31 May WTI Crude Oil Price Technical Forecast
As noted by FXStreet’s Eren Sengezer,
“WTI could encounter the first resistance at $68.70 (May 30 high) ahead of $70 (psychological level) and $71.35 (May 9 high). On the downside, the immediate support is located at $68 (psychological level) before $66.40 (May 30 low) and $65.80 (May 28 low).”
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