Skerdian Meta•Wednesday, November 6, 2024•1 min read
Oil prices were retreating in the last few sessions, with WTI crude falling below $70, but we have seen a strong jump of nearly $3 in the last few hours. The EIA Oil inventory showed a decent buildup for last week, which should have weighed on prices further, but Oil is ignoring it totally.
Crude oil prices, which hit yearly lows at the end of last month, saw a recovery in early November as speculation grew that OPEC might delay planned production hikes, alleviating supply concerns. Today, oil prices climbed by roughly $3 after OPEC officially postponed the anticipated production increase, following a 50-cent jump over the weekend. However, the upcoming U.S. elections have added some pressure, with WTI crude briefly dropping below $70.
WTI Oil Chart H4 – Bouncing Off MAs
A sharp rebound in the last few hours pushed prices above $72 following the election of Donald Trump, whose stance on enforcing stricter sanctions on Iranian oil could generate short-term bullish momentum. The longer-term effects of his policies, however, are less certain. Persistent geopolitical issues in the Middle East, including the risk of conflict, continue to add volatility to the oil market. Below is the EIA inventory for last week:
Skerdian Meta Lead Analyst.
Skerdian is a professional Forex trader and a market analyst. He has been actively engaged in market analysis for the past 11 years. Before becoming our head analyst, Skerdian served as a trader and market analyst in Saxo Bank's local branch, Aksioner. Skerdian specialized in experimenting with developing models and hands-on trading. Skerdian has a masters degree in finance and investment.