WTI Crude Oil Supported by OPEC+ Output Delay & Strong Inventory Data

Filling a vehicle with Biofuel by Scharfsinn via Shutterstock

WTI Crude Oil futures found support yesterday after reports surfaced that OPEC+ is contemplating output hike delays.

By Bloomberg

Eight of the group’s members are scheduled to start unwinding covid era voluntary production cuts starting in December. The unwind would add 180k bpd of supply in December, around 1mln bpd by May, and 2.5mln bpd by the end of 2025.

The output hikes were originally scheduled to start in October but were delayed to account for global economic weakness, mainly out of China.

Yesterday’s EIA data also provided fodder for the bulls as counter-seasonal draws signaled physical market strength. Inventory data as follows [thousand bbls]:

Crude Oil: -515 vs +1,805 estimate
Gasoline: -2,707 vs +600 estimate
Distillates: -977 vs -973 estimate


Overnight price action was bolstered by positive Chinese economic data as Manufacturing PMI’s beat expectations. WTI futures are up +0.58 to 69.20 [+0.85%] as we gear up for the U.S. trading session.

Talks of an Israel – Lebanese ceasefire may provide ammo for the bears and headline risk should be noted.

WTI Crude Oil futures are trading above the 69.00 gap-down level from Sunday night. This level should be closely watched as the chart looks to fill that gap. We advise patience at these levels as price is trading between key support and resistance levels while fundamental catalysts remain inherently binary and could shift momentum in either direction at moments notice…

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