WTI Oil dips on Monday as supply ramps up.

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• WTI Oil dips on Monday as supply ramps up.
• Libya opens up its biggest oilfield after a two-week halt due to an outage.
• The US Dollar Index faces selling pressure and could slide lower this week.

Oil prices are nearly flat this Monday with no new developments in the Red Sea and with Libya’s state-run National Oil Corporation opening up its biggest Oil field. This means an additional production of 270,000 barrels per day, putting overall output back above 1 million barrels per day for the OPEC country. Prices are paring back losses though ahead of the US opening bell, with oil near flat while suppy returns to normal.

Meanwhile, the DXY US Dollar Index is facing some selling pressure from a technical point of view. The index posted lower highs and lower lows on the daily chart, signalling that the US Dollar is set to slide lower soon. On the economic data front this week, traders will face the US Gross Domestic Product (GDP) print and the Fed’s preferred inflation index, the Personal Consumption Expenditure (PCE) Price Index.

Crude Oil (WTI) trades at $73.55 per barrel, and Brent Oil trades at $78.48 per barrel at the time of writing.

Oil prices are struggling with again an OPEC member defying the production cuts Saudi Arabia is enforcing. After Russia already breached its production cut commitments, Libya is adding more supply as its biggest Oil field comes back online, putting the country back above 1 million barrels per day in production.

On the upside, $74 continues to act as a line in the sand after a failed break above it on Friday. Although quite far off, $80 comes into the picture should tensions build further. Once $80 is broken, $84 is next on the topside.

Below $74, the $67 level could still come into play as the next support to trade at, as it aligns with a triple bottom from June. Should that triple bottom break, a new lowcould be close at $64.35 – the low of May and March 2023 – as the last line of defence. Although still quite far off, $57.45 is worth mentioning as the next level to keep an eye on if prices fall sharply.

US WTI Crude Oil: Daily Chart

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