Home Forex Oil falls back to familiar lows on Friday's decline, WTI cracks back to $77.00

Oil falls back to familiar lows on Friday's decline, WTI cracks back to $77.00

by SuperiorInvest


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  • WTI has returned to below $77.00 territory five times in eight days.
  • Crude oil markets are getting back into a low level of crude glut.
  • Analysts expect OPEC to extend cuts in the first quarter into the second quarter.

West Texas Intermediate (WTI) fell back below $77.00 on Friday as energies retreated from recent bullish momentum that failed to break into significant high territory. WTI is set to end the trading week near $76.50, a region that US crude has been trying to break out of since entering the zone on February 9.

Analysts following the Organization of the Petroleum Exporting Countries (OPEC) expect the oil cartel to extend sharp production cuts from the first quarter to the second quarter of 2024, according to a Bloomberg survey. 2023, but attempts to curb global oil supplies to support barrel prices continue to face significant headwinds as energy markets are busy watching non-OPEC global output and ongoing geopolitical headlines.

Crude oil markets remain concerned about potential supply shocks as the Israeli-Palestinian conflict by Hamas in Gaza continues and the Iran-backed Yemeni Houthis continue to attack civilian cargo ships in the Red Sea despite the presence of a US-UK coalition naval fleet.

In its current form OPEC it did not announce its Q2 plans or set a date when it would start discussing the group's production levels heading into the end of the first quarter.

WTI Technical Outlook

WTI slipped below the 200-hour simple moving average (SMA) for the third time in a week at $77.47 as bullish momentum continues to evaporate. US crude is building a rough consolidation pattern in the near term with a technical resistance zone just below $79.00.

Daily candles are seeing stiff technical resistance at the 200-day SMA at $77.60, and the bullish recovery from the last big swing at $67.97 in December has struggled to gain meaningful chart territory.

WTI hourly chart

WTI Daily Chart

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