Oil continues to slide within the channel

The price of WTI crude oil continues to rise ahead of the OPEC+ meeting scheduled for Sunday, during which cartel members will discuss policy regarding production. The group will likely decide to lower the output in response to more than a 20% decline in the oil price since September 2023 highs (now, closer to an 18% decline). While a drop in supply is normally bullish for oil, it is important to note that some of it will get offset by the United States trying to ramp up its domestic production. Furthermore, the prices are already rising in anticipation of the cartel’s decision. Nonetheless, our outlook stays unchanged, with a price target of $70 per barrel for 2024.

Illustration 1.01
Illustration 1.01 displays the daily chart of USOIL and simple support/resistance levels derived from peaks and troughs.

Technical analysis
Daily time frame = Bearish
Weekly time frame = Slightly bearish

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DISCLAIMER: This analysis is not intended to encourage any buying or selling of any particular securities. Furthermore, it should not be a basis for taking any trade action by an individual investor. Therefore, your own due diligence is highly advised before entering a trade.