WTI crude oil trades weak following OPEC supply increase.It low of $72.43 yesterday and is currently trading at $72.90.
The Organization of the Petroleum Exporting Countries (OPEC) including Russia and Saudi Arabia said that it plans to add 500000 barrels per day in Q4 2024.
According to American Petroleum Institute (API), US crude inventories rose by around 4 million barrels in the week ended May 31st, compared to a forecast of 1.9 million barrels.
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- $73.33
Kijun-Sen- $75.90
The immediate resistance is around $73.60. Any jump above the target of $74.40/$75/$75.90. On the lower side, near-term support is around $72. Any breach below will drag the commodity down to $70/$68.
It is good to sell on rallies around $74 with SL around $75 for a TP of $70.
