WTI crude oil closes higher, settling at US$72.67 per barrel, driven by mixed signals from OPEC+ regarding production cuts. (Pivot Orderbook analysis)

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• WTI crude oil closes higher, settling at US$72.67 per barrel, driven by mixed signals from OPEC+ regarding production cuts.
• Ongoing talks between the Biden Administration and House Republicans bring relief as a deal to raise the US debt ceiling nears completion.
• US inflation surges as consumer spending exceeds expectations, with the personal consumption expenditures index rising by 4.4% annually.

The pair currently trades last at 72.82.

The previous day high was 74.36 while the previous day low was 71.03. The daily 38.2% Fib levels comes at 72.3, expected to provide support. Similarly, the daily 61.8% fib level is at 73.09, expected to provide resistance.

Western Texas Intermediate (WTI), the US crude oil benchmark, recovered some lost ground during the week, driven by factors like mixed signals from OPEC+ regarding potential output cuts, ongoing discussions between US politicians about the debt ceiling, and higher-than-expected US inflation.

WTI crude oil trades with gains of $0.99 or 1.35% after hitting a daily low of $71.54, exchanging hands at $72.75 per barrel.

The rise in oil prices comes as conflicting statements emerged from OPEC+’s significant producers. Russia expressed its expectation that there would be no alteration to production quotas during the cartel’s meeting, citing the voluntary cuts of over one million barrels per day implemented at the beginning of May. Conversely, Saudi Arabia’s oil minister cautioned short sellers to remain vigilant.

The upward trajectory of oil prices also corresponds with reports of progress in negotiations between the Biden Administration and House Republicans concerning a deal to raise the US debt ceiling for two years. This development alleviates concerns that the country would face an unprecedented default on its debt payments.

However, recent data from the US reveals stronger-than-expected consumer spending in the previous month, which increased by 0.5% following a stagnant performance in March. Additionally, the Personal Consumption Expenditures (PCE) index, the Federal Reserve’s preferred inflation gauge, rose by 4.4% annually, surpassing the 4.2% growth reported in March.

Technical Levels: Supports and Resistances

XTIUSD currently trading at 72.82 at the time of writing. Pair opened at 71.83 and is trading with a change of 1.38 % .

The pair is trading above its 20 Daily moving average @ 72.13, below its 50 Daily moving average @ 74.51 , below its 100 Daily moving average @ 76.0 and below its 200 Daily moving average @ 79.71

The previous day high was 74.36 while the previous day low was 71.03. The daily 38.2% Fib levels comes at 72.3, expected to provide support. Similarly, the daily 61.8% fib level is at 73.09, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 70.45, 69.08, 67.12
• Pivot resistance is noted at 73.79, 75.74, 77.12

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