FxWirePro: Daily Commodity Tracker - 21st March, 2022 
WTI has reversed its loss from $39 area and has moved against our call (which we changed revised before big move and was advised to close, still within the money), largely because words came out that OPEC members would hold an informal meeting.
Key factors at play in Crude market –
- OPEC countries have announced an informal meeting in late September when on the sideline of IEA biennial summit in Algeria.
- A leaked email showed Saudi Arabia’s oil minister Khalid al-Falih talking about cooperation if needed. However, Iran has said that the production level desired is yet not reached.
- Oil market glut has shifted from crude oil to gasoline.
- Recent research by Rystand Energy has revised US crude reserve upwards to 264 billion barrels, more than Saudi Arabia and Russia.
- U.S. oil production has dropped to 8.52 million barrels/day and likely to drop further. It has declined more than a million barrel from the peak.
- Active oil rigs in the US have been climbing and up more than 25 percent from its bottom.
- American Petroleum Institute’s (API) weekly report showed the inventory declined by little more than a million barrels, but gasoline inventory is up more than 2 million barrels.
Today’s inventory report from US Energy Information Administration (EIA) will be released at 14:30 GMT.
Trade idea –
- The key happenings surrounding OPEC and Saudi Arabia have boosted oil price along with weaker dollar, however, as of now, there are no signs that the price would break above $52 resistance area.
- WTI is currently trading at $46.4 per barrel.
