Crude Oil price goes higher on Tuesday for a second consecutive day, further banking on the delay in Oil production normalization by OPEC+. Lower supply could also be on the cards due to chances of disruption in the US Gulf region as tropical storm Rafael is making its way to the oil rigs and could take out 1.7 million barrels per day from production. Meanwhile, Saudi Aramco – the biggest state-owned oil producing company from Saudi Arabia – has posted a 15% drop in quarterly profit, adding to chances that Saudi Arabia urges OPEC+ to do more in limiting supply. (DXY), which tracks the performance of the Greenback against six other currencies, is trading sideways as US citizens are heading to the voting booths to choose their next president. Chances that by Wednesday markets will know if Vice President Kamala Harris or former President Donald Trump will be the next president are very slim. Over 100 court cases and litigation efforts could kick in in case there is no clear- winner, a scenario that could throw the US into weeks or months of political uncertainty. Oil news and market movers: Portion of US output at risk
Oil Technical Analysis: Saudi Arabia cash cow takes hitCrude Oil prices could rally further now that Saudi Arabia is being hit where it hurts: earnings and income. With the 15% decline in quarterly earnings, alarm bells must be going off at the ministry of Energy in the oil state. Saudi Arabia could use its influence in OPEC+ to jack up Oil prices by limiting production in order to recoup incurred losses due to the lower prices. On the upside, the hefty technical level at $74.40, with the 100-day Simple Moving Average (SMA) and a few pivotal lines, is the next big hurdle ahead. The 200-day SMA at $76.85 is still quite far off, although it could get tested in case tensions in the Middle East pick up again. Very near, though possibly even more important, is the 55-day SMA at $70.90, which should be able to resist any selling pressure. For more downside, traders need to look much lower at $67.12, a level that supported the price in May and June 2023. In case that level breaks, the 2024 year-to-date low emerges at $64.75 followed by $64.38, the low from 2023.(Click on image to enlarge)US WTI Crude Oil: Daily ChartMore By This Author:Crude Oil Surges After OPEC Confirms Delay Of Supply Restart US Dollar Trades Flat This Friday Ahead Of Durable Goods Data US Dollar Gains Further Fueled By Surge In US Yields, Election Uncertainty
