WTI Crude Stabilizes at $77 as OPEC+ Extends Cuts

On Monday, WTI crude futures hovered around $77 per barrel, facing uncertainty after OPEC+ members agreed over the weekend to extend their joint output cuts until 2025. This extension includes maintaining voluntary cuts of 3.66 million barrels per day beyond their initial expiration at the end of 2024, alongside prolonging an additional 2.2 million barrels per day of cuts until the end of the third quarter of this year. However, eight OPEC+ nations have outlined plans to gradually phase out the extra 2.2 million barrels per day of cuts over the course of a year, from October 2024 to September 2025. In the previous month, oil prices experienced a 6% decline due to uncertainties surrounding demand, putting pressure on the market. Recent concerns about the US Federal Reserve potentially maintaining high interest rates have also contributed to fears of slower economic growth and reduced oil demand.

Experiencing a downward trend over the past three days, oil continued its downward movement today. The first support level to watch for is at 76.10, and if broken, subsequent levels at 75.80 and 75.40 may be observed. However, in case of an upward reversal, levels to monitor above 76.90 include 77.65 and 78.30.

Resistance 3	Resistance 2	Resistance 1	Support 1	Support 2	Support 3
78.30	77.65	76.90	76.10	75.80	75.40