- Summary:
- Crude oil price largely unmoved even as Kuwait promises to deliver on its production cuts as agreed by OPEC members. Crude oil testing key support.
KUNA, the Kuwaiti official news agency, has publicized statements from Kuwait’s Oil Minister Khaled al-Fadhel, assuring that the country will fully commit to production cuts agreed to by oil exporters so as to shore up crude oil prices. According to this report, Kuwait has already over delivered on its own production cuts by 160%.
These comments do not seem to have spurred the energy markets, still being weighed down by heavy risk-off market sentiment. Concerns over the continued US-China trade war and the global economic growth continue to weigh on crude oil, with WTI crude seen to be testing a key support area at 53.77. This is after falling by nearly 50 cents from the market open for the week.
The markets will wait on new headlines for the week and Wednesday’s crude oil inventories report to get a glimpse of crude oil’s next major price move.
Technical Play for Crude Oil
Crude is testing the central pivot at 53.77. This is also the site of the August 1st and August 6 lows, and is joined by an ascending support trendline which connects the lows of the last three trading days.
If price breaks this support level, then expect price to target the next support at 52.95 and 52.71. On the flip side, if price is well support at the central pivot, then 55.23 and 56.29 should be expected.