News & Analysis / Analysis / Market Analysis: WTI Oil Price Drops to Lowest Level Since July

Market Analysis: WTI Oil Price Drops to Lowest Level Since July

FXOpen

As the chart shows, the price of a barrel of US crude oil dropped below 72.10 per barrel yesterday for the first time since July 2023.

Fundamentally, this happened against the backdrop of:

→ Statistics showing that US oil exports are increasing. Volume is approaching a record 6 million barrels per day, with flows to Europe and Asia showing steady growth.
→ Previously announced measures to reduce oil production by OPEC+. However, either the price has already taken these statements into account in advance, or market participants are not confident that the reduction in OPEC+ supplies will be fully implemented — one way or another, so far the OPEC+ countries have not achieved the desired increase in oil prices. Perhaps, in order to discuss the oil market, Russian President Putin is flying to the UAE and Saudi Arabia today. And Deputy Prime Minister Alexander Novak said OPEC+ is ready to deepen oil production cuts in the first quarter of 2024 to eliminate “speculation and volatility” if existing production reduction measures are not enough.

From a technical analysis point of view:

→ the price of oil continues to develop its dynamics within the descending channel (shown in red);
→ the rising channel (shown in blue) looks like an intermediate correction within a larger decline. The lower boundary of the parallel channel may provide support for the current decline;
→ yesterday's update to the low was very small, it looks like a false breakout of the November low. The bears seem unsure, but they may make a new attempt if there is a successful test of the level of $73 per barrel, which worked as support in early December, but today may provide resistance. Also pay attention to the lower boundary of the downward channel, where sellers can take profits from short positions.

Start trading commodity CFDs with tight spreads. Open your trading account now or learn more about trading commodity CFDs with FXOpen.

This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.

Stay ahead of the market!

Subscribe now to our mailing list and receive the latest market news and insights delivered directly to your inbox.

forex

Instrument
Live ECN bid
Live ECN ask
Action
EURUSD
1.04252
1.04254
Trade
GBPUSD
1.25081
1.25084
Trade
AUDUSD
0.62831
0.62833
Trade
USDJPY
154.265
154.271
Trade
USDCAD
1.42716
1.42719
Trade
More
Commodity CFD Trading with FXOpen

Commodity CFD Trading with FXOpen

  • Trade with tight spreads and low commissions
  • Choose from 4 trading platforms: MT4, MT5, TradingView, or TickTrader
  • Experience ECN technology for deep liquidity and light-speed trade execution
Learn more

Latest articles

Analytical Chainlink Price Predictions for 2025, 2026–2030 and Beyond
Trader’s Tools

Analytical Chainlink Price Predictions for 2025, 2026–2030 and Beyond

Chainlink plays a vital role in connecting blockchain-based smart contracts with real-world data. This article explores Chainlink’s historical price performance, analyses various Chainlink price predictions for 2025 and beyond, and examines key factors shaping its trajectory.

Forex Analysis

USD/JPY Exchange Rate Recovers from Yearly Low

As shown on the USD/JPY chart, today the exchange rate aggressively surged above the 153 yen per US dollar level. This marks a strong recovery from the yearly low of around 151 yen per dollar, set last week.

Today's

Shares

Coca-Cola (KO) Stock Surges Nearly 5% in a Day

Yesterday, shares of The Coca-Cola Company (KO) saw a significant rally, climbing nearly 5% and reaching a yearly high above $67. The last time KO stock traded at this level was in late October 2024. Investor optimism was fueled by

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage.CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 60% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.