FxWirePro- Crude oil Daily Outlook

WTI crude oil pared some of its gains on weak Chinese growth.  China forecasted 5% growth targets for 2024, far below the previous year's double-digit growth. The Organization of the Petroleum Exporting Countries (OPEC) decided to extend its production for quarter two of 2024 by 2.2 million barrels per day. Russia will cut its output by 471000 barrels per day until the end of June. It hit a low of $77.55 and is currently trading around $78.86.

According to API, US crude inventories rose by 423000 for the week ended Mar  2nd, compared to a forecast of 8.4 M.

Major factors for crude oil price movement-

US dollar index (Bearish)- Positive for Crude. Major resistance - 104.20/105. Major support- 103.40/102.80.

Geopolitical tension-  Escalation of Middle East tension (Positive for crude)

 Ichimoku analysis (4- hour chart)

Tenken-Sen- $78.47

Kijun-Sen- $79.16

The immediate resistance is around $81. Any jump above $80 targets $83.50/$85. On the lower side, near-term support is around $77.70. Any breach below will drag the commodity down to $76/$75.51.

It is good to buy on dips around $75 with SL around $73 for TP of $80/$83.