WTI Crude Nears $79 on OPEC+ Cut Expectations

On Tuesday, WTI crude futures approached $79 per barrel, recovering from three-month lows. This rise was driven by expectations that OPEC+ would extend voluntary output cuts of 2.2 million barrels per day into the second half of the year during its June 2nd meeting. Market participants await a key US inflation report this week to assess the Federal Reserve's monetary policy. A softer-than-expected US PCE price index could boost hopes for rate cuts, enhancing economic growth and energy demand. Traders are also watching German and Eurozone inflation data, which could confirm expectations of European Central Bank rate cuts next week.

Oil continues its positive trend from the last two sessions. With the breach of the downward trend resistance on the daily chart, the resistance level of 78.80-78.90 has become the initial support zone. If oil drops below this area, the levels to watch are 78.30 and 77.60. If the upward momentum continues, the 200-day moving average at 80.00 will be the first resistance. A sustained move above this level targets 81.00 and then 81.90.

Resistance 3	Resistance 2	Resistance 1	Support 1	Support 2	Support 3
81.90	81.00	80.00	78.80	78.30	77.60