Oil dips after OPEC signaled easing in production curb; EIA crude stocks report in focus
WTI oil price fell nearly $1 but remains above $40 level after OPEC+ announced that the group of top oil producers will ease record supply cut from August, as global economy recovers.
The group is set to reduce output cut from 9.7 million bpd to 7.7 million bpd until December, with initial reduction to 8.54 million bpd expected in Aug/Sep.
Oil price advanced on Wednesday following sharp drop in US Crude inventories (API report on Tuesday showed draw of 8.3 mln bls, well above forecasted drop of 2.1 mln bls.
WTI price establishes above $40, which is positive signal, but remains within broader consolidation range.
Fading bullish momentum and flat RSI / Stochastic lack firmer signal for now, with focus turning to EIA crude stocks report (2.09 mln bls draw forecasted vs 5.65 mln bls build previous week).
Stronger drop in crude stocks would add to positive signals and inflate oil price, while disappointing figure would further soften near-term tone.
Res: 40.97; 41.35; 41.61; 42.00
Sup: 40.00; 39.81; 39.12; 38.27