WTI Oil finds a floor for now near $76 in a sensitive market.

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• WTI Oil finds a floor for now near $76 in a sensitive market.
• Oil traders were caught by surprise by the EIA build of stockpile by 1.234 million barrels.
• The US Dollar Index sees post-Fed gains evaporating in fading price move.

Oil prices are finding a floor near $76, backed by the OPEC statement being released after the meeting earlier this Thursday. A panel of OPEC+ members said no policy changes are foreseen for now, while the US has reportedly hit a six-month high in November on production. Add the stockpile buildup number from the Energy Information Administration (EIA) overnight with a surprise build of 1.234 million barrels, and quick breach above $80 looks doubtfull.

Meanwhile, the US Dollar Index (DXY) is in the green, though momentum appears to be fading again. Although the US Federal Reserve Chairman Jerome Powell pushed back against a March rate cut possibility, he did not really do that for May or June. This means a small tweak in positions, with no substantial moves expected in the US Dollar further.

Crude Oil (WTI) trades at $76.57 per barrel, and Brent Oil trades at $81.29 per barrel at the time of writing.

Oil prices, though picking up under the current news headlines, do not hold asmuch upside potential as markets think. Saudi Arabia’s woes about production levels appear to be a big threat for OPEC at a time when the group sees the US easily matching the current supply cuts by pumping more oil than it has been doing in the past years.

Although price action came very near, the $80 level will not be easy to beat. Once $80 is broken, $84 is next on the topside. A few dollars further, the red line near $87.66 comes into focus, though by then the Relative Strength Index (RSI) will likely be trading at overbought levels.

On the downside, the $74 level will act as immediate support for any sudden declines. The $67 level could still come into play as the next support as it aligns with a triple bottom from June. Should that triple bottom break, a new low could be close at $64.35 – the low of May and March 2023 – as the last line of defence.

US WTI Crude Oil: Daily Chart

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