3 Dec 2015
Oil climbs on proposed Saudi production cut-deal
FXStreet (Mumbai) - The oil benchmarks on both sides of the Atlantic rebounded this Thursday after reports hit the wires that Saudi Arabia proposed to cut oil production ahead of the Dec 4 OPEC meeting.
WTI holds above $ 43
Currently, WTI rises 1.04% to 40.36, retreating slightly from fresh session highs posted at 40.65. Oil prices received fresh impetus this session after Saudi official told Reuters that the Kingdom was ready to slash production only if other non-OPEC members along with Iran also lower their output levels.
However, the upside in the prices remains capped on the back of broad based US dollar strength and growing oversupply worries. According to the EIA report, the commercial crude stockpiles increased by 1.177 million barrels in the week ended November 27, against a fall of 900,000 barrels expected.
In the day ahead, oil traders are expected to remain cautious ahead of the ECB meeting and Friday’s OPEC meeting.
WTI Oil Technical Levels
WTI oil has an immediate resistance which stands at 42.60 (Nov 30 high) above which gains could be extended to 43.46 (Nov 24 high). While to the downside, the immediate support is at 39.84 (Dec 2 Low), below which the prices could drop to 38.99 (Nov 20 Low).
WTI holds above $ 43
Currently, WTI rises 1.04% to 40.36, retreating slightly from fresh session highs posted at 40.65. Oil prices received fresh impetus this session after Saudi official told Reuters that the Kingdom was ready to slash production only if other non-OPEC members along with Iran also lower their output levels.
However, the upside in the prices remains capped on the back of broad based US dollar strength and growing oversupply worries. According to the EIA report, the commercial crude stockpiles increased by 1.177 million barrels in the week ended November 27, against a fall of 900,000 barrels expected.
In the day ahead, oil traders are expected to remain cautious ahead of the ECB meeting and Friday’s OPEC meeting.
WTI Oil Technical Levels
WTI oil has an immediate resistance which stands at 42.60 (Nov 30 high) above which gains could be extended to 43.46 (Nov 24 high). While to the downside, the immediate support is at 39.84 (Dec 2 Low), below which the prices could drop to 38.99 (Nov 20 Low).