Commodity Market: US Crude Oil falls a second day as focus sets on OPEC+ response to emergency crude release

Futures on US West Texas Intermediate Crude Oil retreated for a second straight trading day on Thursday, as market players were awaiting major producers’ response to the emergency crude release by key oil-consuming countries, purposed to push prices down.

The Organization of the Petroleum Exporting Countries, Russia and allies (OPEC+) will meet on December 1st-2nd to decide whether to increase production by another 400,000 barrels per day in January or not.

According to a report by Reuters, OPEC+ members are not discussing to pause output increases despite emergency oil stock release by the United States, Japan, India and others.

The US Department of Energy has announced an auction to sell 32 million barrels of strategic petroleum reserves for delivery between December 2021 to April 2022, while it also intends to release additional 18 million barrels soon.

“The release of oil from strategic reserves ramps up competition for control of the oil market amongst the world’s biggest producers,” ANZ analysts wrote in an investor note.

“We don’t expect OPEC will stand by idly as the market enters a critical period.”

As of 10:59 GMT on Thursday WTI Crude Oil Futures were retreating 0.61% to trade at $77.91 per barrel, while moving within a daily range of $77.76-$78.65 per barrel. WTI Crude Oil Futures have retreated 6.78% so far in November, following an 11.38% surge in October.

At the same time, Brent Oil Futures were edging down 0.22% on the day to trade at $82.00 per barrel, while moving within a daily range of $81.72-$82.57 per barrel. Brent Oil Futures have retreated 1.79% so far in November, following a 6.75% gain in October.

Daily Pivot Levels (traditional method of calculation) – WTI Crude Oil Futures

Central Pivot – $78.53
R1 – $79.09
R2 – $79.78
R3 – $80.34
R4 – $80.89

S1 – $77.84
S2 – $77.28
S3 – $76.59
S4 – $75.89

Daily Pivot Levels (traditional method of calculation) – Brent Oil Futures

Central Pivot – $82.31
R1 – $82.84
R2 – $83.51
R3 – $84.04
R4 – $84.57

S1 – $81.64
S2 – $81.11
S3 – $80.44
S4 – $79.77