Wed. Oct 4th, 2023
    WTI Crude Oil Prices Rise on Supply Tightness and Speculation

    The price of Western Texas Intermediate (WTI) crude oil is on the rise, thanks to supply tightness and speculation about global demand. Currently trading at $90.48 per barrel, WTI has experienced modest gains of 0.09%.

    This increase in prices can be attributed to the production cuts implemented by Saudi Arabia and Russia, totaling 1.3 million barrels of crude oil. These cuts were put in place to stabilize the oil market amidst uncertainties surrounding China’s demand.

    Analysts are becoming more bullish on oil prices, with Citi Bank and Chevron’s CEO predicting that Brent crude could surpass the $100 per barrel mark. This positive sentiment reflects the upward revisions in oil price forecasts for 2023 and 2024.

    However, there is some potential for a dip in WTI prices due to upcoming central bank decisions, especially from the US Federal Reserve (Fed). A hawkish hold by the Fed could strengthen the US dollar and put pressure on oil prices.

    In terms of technical analysis, WTI has gained nearly 18% since August 24 and has reached a new year-to-date high of $91.29. It is expected to continue its upward momentum towards the November 2022 high of $92.92. However, there are signs that price action may have peaked, as WTI is forming a doji pattern, indicating a balance between buyers and sellers.

    – Energy Minister of Saudi Arabia defends OPEC+ production cuts (source not provided)
    – Citi Bank and Chevron CEO predict Brent crude surpassing $100 per barrel (source not provided)
    – Impact of central bank decisions, particularly from the Fed, on WTI prices (source not provided)