Oil prices continued to fall as the market worried about OPEC reducing its output cuts from next month and about the strength of the US economy following disappointing US job openings data. Algorithm and macro fund selling has exacerbated the price moves. The USD index fell 0.3% but finished off the lows.

  • WTI traded below $70 through much of Wednesday. It rose to a high of $71.46 before falling through the rest of the session to be down 1.6% to $69.25/bbl, off the intraday low of $68.82 but below initial support. It is currently trading around $69.29. The next level to watch is $68.92, December 13 low. Moving average studies are in a bear-mode signalling a clear downtrend.
  • Brent is 1.3% lower at $72.78/bbl after a high of $74.80 and low of $72.35, below initial support. The breach of the bear trigger confirms the resumption of the downtrend that started in April. The next level to watch is $70.35. Initial resistance is $77.88, 20-day EMA.
  • Low oil prices appear to be pressuring OPEC to delay the start of the unwinding of its output cuts. 180kbd was due to be added in October. After some delegates said that the plan would go ahead, others on Wednesday said that an agreement was imminent to delay the increase in supply.
  • Bloomberg reported that US crude inventories fell 7.4mn barrels last week, according to people familiar with the API data. Gasoline stocks fell 300k and distillate 400k. The official EIA data is out later today but has been showing steady crude drawdowns since the start of July.

OIL: Crude Lower But Talk OPEC Will Delay Supply Increase

Last updated at:Sep-04 22:55By: Maxine Koster

Oil prices continued to fall as the market worried about OPEC reducing its output cuts from next month and about the strength of the US economy following disappointing US job openings data. Algorithm and macro fund selling has exacerbated the price moves. The USD index fell 0.3% but finished off the lows.

  • WTI traded below $70 through much of Wednesday. It rose to a high of $71.46 before falling through the rest of the session to be down 1.6% to $69.25/bbl, off the intraday low of $68.82 but below initial support. It is currently trading around $69.29. The next level to watch is $68.92, December 13 low. Moving average studies are in a bear-mode signalling a clear downtrend.
  • Brent is 1.3% lower at $72.78/bbl after a high of $74.80 and low of $72.35, below initial support. The breach of the bear trigger confirms the resumption of the downtrend that started in April. The next level to watch is $70.35. Initial resistance is $77.88, 20-day EMA.
  • Low oil prices appear to be pressuring OPEC to delay the start of the unwinding of its output cuts. 180kbd was due to be added in October. After some delegates said that the plan would go ahead, others on Wednesday said that an agreement was imminent to delay the increase in supply.
  • Bloomberg reported that US crude inventories fell 7.4mn barrels last week, according to people familiar with the API data. Gasoline stocks fell 300k and distillate 400k. The official EIA data is out later today but has been showing steady crude drawdowns since the start of July.

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