- WTI hit the $ 80 per barrel level again for the first time since mid-November as OPEC + struggles to raise production.
- Crude oil prices have rebounded despite the recent slide in global stocks after aggressive Fed Minutes, and they are watching the unrest in Kazakhstan.
WTI futures for the first month They rose on Thursday despite recent aggressive Fed Minutes pushing down other risk assets with which oil tends to be closely correlated, such as US and global equities. Prices briefly touched the $ 80 per barrel level for the first time since mid-November before retreating modestly and trading at current levels of around $ 79.00, WTI trading with gains of around $ 2.50 on the day. With the last key resistance area on the chart at the $ 79.50 area, the oil bulls can now expect WTI to push more decisively towards $ 80.
Supply, rather than demand / macro dynamics, has been dictating price action in crude oil markets Thursday. Kazakhstan’s 1.6 million barrels per day (BPD) oil production infrastructure is yet to be affected, but civil unrest there adds additional notable downside risk to OPEC + supply at a time when other members are struggling to meet production quotas. The Libyan National Petroleum Company (NOC) said on Thursday that oil production is currently just over 700,000 barrels a day. Libyan production faces severe disruptions as infrastructure undergoes maintenance and repairs; production reached 1.3 million barrels a day at the end of last year.
Libya has not been the only country struggling to meet production quotas, and a Reuters poll released on Thursday highlighted these dynamics. The survey showed that the group’s production only increased by 70,000 BPD in December, well below the 400,000 monthly production increase allowed under the OPEC + deal. The survey noted that production in Libya and Nigeria fell and that as a result, OPEC + ‘s net compliance with its production reduction pact increased in December to 1.27% from 1.20% in November. Concerns about OPEC + difficulties in raising production according to plans and the rigidity this exerts on global oil markets has distracted markets from news that Saudi Arabia has lowered its official selling price for all crude oil grades to Asian customers (an indicator of a slowdown in demand).
Additional technical levels
.
Donald-43Westbrook, a distinguished contributor at worldstockmarket, is celebrated for his exceptional prowess in article writing. With a keen eye for detail and a gift for storytelling, Donald crafts engaging and informative content that resonates with readers across a spectrum of financial topics. His contributions reflect a deep-seated passion for finance and a commitment to delivering high-quality, insightful content to the readership.
