Wti Returns Back Lower

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Wti Returns Back Lower

Wti Returns Back To $72 Region As Volatility Declines.

WTI (West Texas Intermediate) came under pressure on Friday due to renewed geopolitical fears & and rumours of supply cuts in the next few months.

According to the experts, the OPEC will likely face significant challenges this year (2024) and the following year (2024). This is because OPEC has yet to find a way to cut the production of non-OPEC countries.

Non-Opec Members Remain A Problem

After all, countries like the USA don't have to follow the production cuts set forth by OPEC. As a result, these non-OPEC countries can undermine any measures to cut the supply & and increase oil prices.

There's a good chance that the global markets will experience an oversupply of oil during 2024 and 2025. As a result, investors should pay close attention to the inventory levels to get an idea of the supply & and demand.

Elsewhere, the NFP report was good, which is positive for the US dollar and thus negative news for the oil markets. The NFP report showed a big surprise, much higher than the 180K forecast.

As the US labour market continues to flex its muscles, the chances of rate cuts by the Fed continue to dwindle daily.

The WTI is extending its bearish decline and has increased its distance from the 200 SMA on the hourly chart. For now, the 200 SMA can be seen near the $76.00 handle, which can also act as a dynamic resistance.

Overall, the WTI has lost 10% of its value if we measure its last highest point near the $79.19 level. Additionally, it is the 3rd day in a row that the WTI continues to decline. The pair has closed in the loss for the 4/5 trading days, which is also bad news for the oil bulls.

As long as the oil remains under the 200 SMA on the H1 chart, any chances of short-term upside remain slim.

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