- A weaker US dollar supported the WTI rally and rumors that OPEC+ might consider further supply cuts in their upcoming meeting on November 26.
- Russia’s recent lifting of the gasoline export ban could potentially limit the rise in WTI prices.
- The latest US Baker Hughes rig count indicates a potential increase in oil supply, which might pressure oil prices downward.
West Texas Intermediate (WTI), the US crude oil benchmark, rallied more than 2% on Monday and is testing the 200-day moving average (DMA) at $78.13 in the mid-North American session. At the time of writing, WTI is trading at $78.32 after hitting a daily low of $75.49.
Oil prices bolstered by weak Dollar and geopolitical tensions
Oil´s price remains underpinned by the soft US Dollar (USD), alongside sources saying the Organization of Petroleum Exporting Countries and its allies (OPEC+) are considering additional supply cuts when the cartel meets on November 26.
Traders are eyeing Russian crude trade after Washington imposed sanctions on ships that sent Russian crude to India, above the price cap imposed by Washington and the G7 group.
On Friday, Moscow lifted a gasoline ban export, which could cap WTI prices. The latest US Baker Hughes rig count suggested that Oil prices might head lower due to a higher rig count indicating an increase in supply.
In the meantime, US refineries are in course to boost production by 559,000 barrels per day (bpd) this week as they come out of fall planned maintenance, leaving just 264,000 bpd of capacity offline.
Aside from this, geopolitical risks could boost Oil prices, though the Middle East conflict between Israel and Hamas remains contained within the Gaza Strip.
WTI Technical Levels