According to yesterday’s news OPEC is considering further production cuts. The next meeting of oil-producing countries is scheduled for December 5-6. The announcement pushed the oil prices up yesterday.
Oil market updates on October 9
Crude oil inventories – 17:30 MT (14:30 GMT) time
The oil prices slid lower after the private survey of crude oil inventories showed a larger-than-expected level. The number of barrels held in inventories increased by 4.13 million (vs. +1.7 million expected).
Today oil traders are awaiting the weekly release of US crude oil inventories by the Energy Information Administration. According to the forecasts, the number of barrels will advance by 1.8 million. If the actual level is lower, the oil prices will go up. Alternatively, if the number of barrels is higher than the forecasts, the prices for crude will fall down.
- After the fall to the $51.9 level, the price for WTI managed to recover and tested the $53.3 level on the 4-hour chart. If the number of barrels is greater than the forecasts, bulls will break the $53.3 level and target the further levels above the 50-period SMA at $54 and $54.3. The next resistance lies at $54.67. On the other hand, if the number of barrels outperforms the forecasts, the price of WTI will fall below the $52.3 level and try to reach the $51.9 support level. After that, reaching the $51 support level seems possible.
- The Brent’s price, in its turn, has tested the $58.8 level. From the upside, next resistance levels in bulls’ focus will lie at $59.3. After that the price will face the $59.65-$59.8 levels. If bulls overcome them, the resistance at $60 will be their target. Key levels from the downside are $57.9, $57.5 and $57.1.
Note, that you need to choose WTI and Brent futures in MT4 to start trading oil.
Crude oil inventories will be out at 17:30 MT time
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