Key Points:
- CL-OIL (WTI Crude) opened at $66.342 and closed at $66.395–a modest technical recovery after recent losses but concerns over OPEC+ supply plans persist.
- Chevron’s Venezuela license revocation adds short-term uncertainty, as operations must be wound up by April 3.
- The Kirkuk-Ceyhan pipeline could restart, and Kazakhstan may increase production, putting pressure on oil prices.
Oil Recovers Slightly Amid Supply Uncertainty
CL-OIL (WTI Crude) traded around $66.395 per barrel on Thursday, stabilizing after four straight days of declines. Prices moved within a narrow range, reaching a high of $66.420 and a low of $66.110, as traders weighed OPEC+ output plans and potential disruptions in Venezuela.
Technical Analysis
Picture: CL-OIL stabilises at 66.395, testing resistance at 66.80 amid neutral momentum, as seen on the VT Markets app.
CL-OIL edged up 0.08%, closing at 66.395 after opening at 66.342. The price tested a high of 66.420 and a low of 66.110, indicating consolidation near recent levels.
The moving averages (MA 5,10,30) suggest a neutral stance, with short-term MAs flattening around the longer-term trend. The MACD (12,26,9) histogram shows weakening bearish pressure, hinting at a possible shift in momentum.
Key support is at 65.21, while resistance stands at 66.80. A breakout above resistance could push prices higher, whereas a failure to hold support may lead to renewed selling pressure.
OPEC+, Venezuela Supply Risks and Other Factors in Focus
OPEC+ reaffirmed its decision to increase production from April, phasing out 2.2 million bpd of cuts in small increments. At the same time, Chevron must cease operations in Venezuela by April 3, which could disrupt crude flows and impact global supply in the short term.
The potential restart of the Kirkuk-Ceyhan pipeline and an expected increase in Kazakh oil production could counteract Venezuelan supply risks, keeping prices under pressure.
Market Outlook
Oil prices are struggling for direction, with traders balancing supply disruptions against increasing output from key producers. If demand remains steady, crude could see short-term support, but a further increase in supply could limit gains.
