Bearish news accumulates for crude oil – .

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Bearish news accumulates for crude oil – .


US West Texas Intermediate edged up Friday after OPEC and its allies put forward plans to ramp up production. Prior to the decision, the group known as OPEC + faced opposition from the United States and other large consumers, who wanted producers to increase supply in order to cap prices.

Although the market was able to end the week with a higher session on Friday, the technical situation turned slightly bearish. In the meantime, traders are now facing the possibility of increased production in Saudi Arabia in addition to growing supply issues in the United States. States. Nevertheless, the outlook remains favorable due to the growth in global demand due to the pace of economic recovery.

The wildcard next week could be the release of oil from the US strategic reserve after OPEC + rejects requests from the US and other countries to increase supply before winter.

OPEC + rejects US call to increase production

OPEC and its allies agreed on Thursday to stick to their plan to increase oil production by 400,000 barrels per day (bpd) from December, ignoring calls from US President Joe Biden for production additional to curb the rise in prices.

OPEC’s main producer Saudi Arabia has rejected calls for faster increases from the Organization of the Petroleum Exporting Countries (OPEC) and its allies, including Russia, collectively known as OPEC + name, citing economic headwinds, Reuters reported.

President Biden blames OPEC + for sharp rise in fuel prices

President…

US West Texas Intermediate edged up Friday after OPEC and its allies put forward plans to ramp up production. Prior to the decision, the group known as OPEC + faced opposition from the United States and other large consumers, who wanted producers to increase supply in order to cap prices.

Although the market was able to end the week with a higher session on Friday, the technical situation turned slightly bearish. In the meantime, traders are now facing the possibility of increased production in Saudi Arabia in addition to growing supply issues in the United States. States. Nevertheless, the outlook remains favorable due to the growth in global demand due to the pace of economic recovery.

The wildcard next week could be the release of oil from the US strategic reserve after OPEC + rejects requests from the US and other countries to increase supply before winter.

OPEC + rejects US call to increase production

OPEC and its allies agreed on Thursday to stick to their plan to increase oil production by 400,000 barrels per day (bpd) from December, ignoring calls from US President Joe Biden for production additional to curb the rise in prices.

OPEC’s main producer Saudi Arabia has rejected calls for faster increases from the Organization of the Petroleum Exporting Countries (OPEC) and its allies, including Russia, collectively known as OPEC + name, citing economic headwinds, Reuters reported.

President Biden blames OPEC + for sharp rise in fuel prices

President Joe Biden bluntly blamed the reluctance of OPEC and its allies to pump more oil for the sharp rise in energy prices in the United States and around the world.

“The idea that Russia and Saudi Arabia and other big producers are not going to pump more oil so that people can have gasoline to get to work, for example, is not fair” Biden said at the G-20 meeting in Rome on Sunday. .

US Energy Secretary Jennifer Granholm even called on oil-producing countries to immediately increase their crude supplies to alleviate the soaring cost of living.

“The message is that we need to increase the supply right now so people don’t get injured during the winter months,” Granholm told CNBC’s Steve Sedgwick on Friday at the COP26 climate summit in Glasgow, in Scotland.

Saudi Arabia’s production surge imminent New wild card

Although prices rose on Friday, traders are taking a cautious stance after the market fell sharply in the previous session as Saudi TV reported an imminent increase in production.

Saudi Arabia’s oil production will soon exceed 10 million barrels per day for the first time since the start of the COVID-19 pandemic, according to the report. The report, by Saudi broadcaster Al Arabiya TV, came after the country, along with other OPEC countries, agreed to stick to previously agreed production increases.

Crude inventories in the United States rise, as gasoline hits four-year low – EIA

Crude oil inventories in the United States rose more than expected, but gasoline inventories fell to their lowest level in four years thanks to steady demand, the Energy Information Administration (EIA) said on Wednesday.

Crude inventories rose 3.3 million barrels during the week of Oct. 29 to 434.1 million barrels, compared to analysts’ expectations in a Reuters poll for a rise of 2.2 million barrels.

U.S. gasoline inventories fell 1.5 million barrels during the week to 214.3 million barrels, the EIA said, placing those inventories at their lowest level since November 2017.

Weekly technical analysis

December Weekly WTI Crude Oil Trend indicator analysis

The main trend is up according to the weekly swing chart. However, momentum has shifted to the downside with confirmation of last week’s closing price reversal top.

A trade at $ 85.41 will cancel the reversal top of the closing price and signal a resumption of the downtrend. A move to $ 61.11 will change the main downward trend.

Analysis of the retracement level

The minor range is $ 61.11 to $ 85.41. The market is currently trading on the strong side of its retracement area at $ 73.26 making it the closest support.

The short-term range is $ 55.54 to $ 85.41. His $ 70.53 to $ 66.99 retracement area is the best support area. This area controls the short-term direction of the market.

The main range is $ 37.70 to $ 85.41. If the main trend changes lower, its retracement area at $ 61.56 to $ 55.93 will become the main down target and value area.

The targets for the retracement area will increase as the market increases.

Weekly technical forecasts

The direction of the WTI crude oil market from December to the week ending November 12 will be determined by the reaction of traders at $ 82.19.

Bullish scenario

A transaction at $ 82.19 will indicate the presence of buyers. If this move is able to generate enough bullish momentum, look for a possible rise to $ 85.41. This is a potential trigger point for upward acceleration.

Bearish scenario

A sustained move below $ 82.19 will signal the presence of sellers. Withdrawing $ 78.25 will indicate that selling pressure is building. This could create the downward momentum needed to complete a two to three week correction or test of $ 73.26

Short term outlook

OPEC + ‘s decision to increase daily production by 400,000 bpd did not shock the market. In fact, traders seemed to adopt it on the weekend. The new concern is the expected rise in Saudi production.

Traders will also watch how the United States and other countries react to OPEC + ‘s refusal to increase production. Friday’s provisional trade may be a sign traders suspect the United States of releasing oil from its strategic reserve in a bid to drive prices down before winter.

We could see volatile trade over the next week with some traders looking for a breakout in a value area at $ 73.26 and others wanting to buy strength in order to fuel a breakout over $ 85.41 .

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