WTI nears $91, boosted by OPEC+ cuts and demand uncertainty

• WTI is trading at $90.48 per barrel, up 0.09%, amid Saudi and Russian production cuts of 1.3 million barrels aimed at stabilizing the market.
• Citi bank and Chevron CEO predict that Brent crude oil could surpass the $100 per barrel mark, a sign of bullish sentiment in the oil market.
• The upcoming decisions of central banks, particularly the Fed, could affect WTI prices; an aggressive line stance could strengthen the dollar and put downward pressure on oil.

He Western Texas Intermediate (WTI), the US crude oil benchmark, rises thanks to tight supply. At the same time, uncertainty over global demand caused a jump in WTI, which is trading above $90 per barrel at $90.48, posting a modest 0.09% gain.

Western Texas Intermediate (WTI) nears year-to-date highs, boosted by OPEC+ production cuts and market speculation about future demand

Saudi Arabia’s Energy Minister Prince Abdulaziz bin Salman defended crude oil cuts by the Organization of the Petroleum Exporting Countries and its allies (OPEC+), needed to stabilize markets amid uncertainty over demand from China .

A few months ago, Saudi Arabia and Russia established cuts of 1.3 million barrels of crude oil production to stabilize oil prices as demand remains fragile. Since then, Brent and WTI crude oil have risen for three consecutive weeks.

Meanwhile, analysts are beginning to revise oil prices upwards for the end of 2023 and 2024. Citi has been the latest bank to forecast that Brent will exceed $100 a barrel this year, echoing comments by the CEO of Chevron, Mike Wirth, who stated that oil would cross that threshold.

Apart from this, WTI could experience a decline, as decisions by central banks, mainly focused on the Fed, will be on the global economic agenda. If the US Federal Reserve maintains a hawkish stance, this could prop up the Dollar to the detriment of US dollar-denominated assets.

WTI Price Analysis: Technical Perspective

Since August 24, WTI has gained nearly 18% and reached a new year-to-date high of $91.29. The price of oil is set to extend its gains towards the November 2022 high at $92.92, but the price action appears to have peaked as WTI is forming a doji, meaning neither buyers nor sellers They are in charge. The $92.00 zone is the most bullish before the November 2022 high is tested. Conversely, a drop below today’s low of $89.85 could open the door to a deeper correction, with sellers targeting $88.00.