WTI crude oil trades weak following OPEC production cut.It low of $76.63 at the time of writing and is currently trading at $78.96.
The Organization of the Petroleum Exporting Countries (OPEC) including Russia and Saudi Arabia said that it will reduce production cuts to 2.2 million per day from Sep 2024 to Oct 2025.
Major factors for crude oil price movement-
US dollar index (Bearish)- Positive for Crude.
Major resistance - 105/106.50.
Major support- 104/103.
Geopolitical tension- Optimism in ceasefire talks between Israel and Gaza ( negative for crude).
Ichimoku analysis (4- hour chart)
Tenken-Sen- $77.97
Kijun-Sen- $78.60
The immediate resistance is around $77.60. Any jump above the target of $78.35/$79/$80. On the lower side, near-term support is around $76.60. Any breach below will drag the commodity down to $75/$74/$70.
It is good to sell on rallies around $78.55-60 with SL around $79.35 for a TP of $75.
