Pre Open US - US Oil 4 Aug 2023

The bank noted that Saudi Arabia warned of possible additional extensions or deeper output cuts. Russia also announced an extension of its voluntary cut into the next month but at a reduced rate of 300,000 barrels per day. These announcements were made prior to the Joint Ministerial Monitoring Committee meeting of the Organization of the Petroleum Exporting Countries and allied producers. In this meeting, they will assess the impact of the ongoing production agreement.

Additionally, Russia mentioned that it would further reduce its oil exports by 300,000 barrels per day. During the same time, there was a reported drone attack on the Russian Black Sea port of Novorossiysk, a significant hub for their oil exports. However, it remained unclear if the port itself had suffered any damage.

From a technical standpoint, the price of WTI continues its bullish momentum, and the long-term trend remains positive. The next challenge will be breaking the historical resistance level at $82.60 in December 2022.