Earlier this week on Wednesday, OPEC+ members met in Viena. In an almost strict decision, the Organization of Petroleum Exporting Countries and its allies (OPEC+), said it would cut supply by 2 million barrels per day (bpd), and a 3.5 million bpd shortfall in its daily production to counter recent weakness in crude prices, while the United States used to put pressure on many of producers to increase the production. However, the statement and members did not provide details on which members would cut supply, and when the cut would be implemented. They also did not address how the cut would be implemented about the production cut.
Bulls for now can lead the charts.
After that the US pressures did not work, in response, Us President, Joe Biden said that the US will release more oil from its Strategic Petroleum Reserve (SPR), which is already drowned to its lowest level since 1984.
In addition, further tightening of crude supply, in line with sanctions against Russia, geopolitical tensions in Iran, and the harsh European winter, is likely to lift the prices even further. Supply decreases and demand has no sign of falling. According to the US retail sales data, retail gasoline demand was sluggish throughout the summer but has improved in recent weeks, and it is another reason why stocks of gasoline sitting at an eight-year low. Also, while in recent months refineries in the US have been working at 91% of their capacity, it can increase the damages in this industry, and additional refining upsets could squeeze that inventory more, boosting prices.
From a technical point of view, WTI moves in a clear uptrend with a price above 20-DMA and increasing momentum as we can see in the stochastic. Since we can see this upward movement in the smaller timeframes, bulls can stay in the charts for now.