{"id":59891,"date":"2023-04-06T15:35:14","date_gmt":"2023-04-06T12:35:14","guid":{"rendered":"https:\/\/ironfx-com-php8.wp-dev.int.theitops.net\/?p=59891"},"modified":"2026-02-09T16:23:44","modified_gmt":"2026-02-09T14:23:44","slug":"wti-jumps-after-opec-output-cuts","status":"publish","type":"post","link":"https:\/\/www.ironfx-id.com\/zh\/wti-jumps-after-opec-output-cuts\/","title":{"rendered":"WTI jumps after OPEC+ output cuts"},"content":{"rendered":"

Crude oill<\/a><\/span> is currently on track to record its third straight week in the greens, further distancing itself from its 15-month lows. Contributing to this week\u2019s impressive gains was the surprise announcement of OPEC+ to cut output production, as the cartel detected a deviation in market fundamentals and the price of crude and decided to intervene to restore stability. In this report, we aim to shed light on the catalysts driving WTI\u2019s price, assess its future outlook and conclude with a technical analysis.<\/p>\n\n\n\n

OPEC+ strikes again<\/strong><\/strong><\/strong><\/h2>\n\n\n\n

Energy traders were quick on their feet during the early hours of the Asian trading session on Monday, recalibrating their positions to reflect the surprise announcement of OPEC+ the day before. As a result WTI prices spiked by nearly 7% from Friday\u2019s close to the $81 per barrel and managed to consolidate its gains, holding steady around this range ever since. The oil cartel caught everyone off guard, once again, this past Sunday as it broadcasted to the world its unyielding commitment at intervening and rebalancing the market whenever a so called \u201cdeviation\u201d occurs. During an unofficial ministerial meeting, the organization announced 1.16 million barrels of output cuts, set to take place in May and will last for the remainder of the year. The voluntary cuts by OPEC+ attracted criticism from Western nations, more specifically the US, whose envoys outright branded the decision as ill-advised, expressing forthright their disagreement with the decision. Even thought the US and Saudi Arabia, the leader of the oil cartel, share a strategic trade alliance the US does not have an implicit say into how the kingdom does business. John Kirby, coordinator for strategic communications at the National Security Council of the United States held a media briefing to discuss the incident and stated that “we’re not always going to agree…with everything that Saudi Arabia does or says any more than they’re always going to agree with everything that we do or say, but that doesn’t take away from the fact that it is a strategic partnership”, attempting in a sense to contain escalating tensions. The relationship of the two nations have grown bitter over the past year, following the decision of the Saudis to cut oil production by 2-million-barrel last October. To conclude, the event constitutes as a bullish catalyst for oil prices in the short term, since a reduction in supply by OPEC alongside the slacking demand for crude from China since its reopening, pushes traders to upwardly revise their outlooks.<\/p>\n\n\n\n

API and EIA report depleted stockpiles for the second straight week<\/strong><\/strong><\/strong><\/h2>\n\n\n\n

Last week crude oil inventories in the US recorded their second consecutive week of drawdowns, possibly signaling a shift in demand for domestic consumption. On Tuesday the weekly API crude oil inventories reported a 4.3-million-barrel drawdown, higher than the expectation 1.8 million barrels, while yesterday EIA\u2019s weekly oil inventories recorded a similar drawdown of a 3.7-million-barrels of crude, again higher than the 2.3-million-barrel drawdown expectation for the same period. Even though the results may provide confidence in the eyes of energy traders with bullish outlooks, there was no substantial reaction to the release. WTI has been trading in a tight range around the $80 since the start of the week and currently appears to be in consolidation mode, with neither the bulls nor the bears taking the initiative. Lastly, we would like to point out that last Friday the Baker Hughes oil rig count report showed that the number of active oil rigs in the US, decreased by a count of 1 reaching a total of 592, which serves as an indication of slight slowdown in demand over the past week.<\/p>\n\n\n\n

\u6280\u672f\u5206\u6790<\/strong><\/h2>\n\n\n\n

WTICash 4H Chart<\/strong><\/strong><\/strong><\/strong><\/h3>\n\n\n\n
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