Venezuela and US Confirm Historic Oil Agreement

The historic oil agreement between Venezuela and the US could exert downward pressure on Brent prices amid expectations of increased supply. On the technical front, the RSI is in neutral territory at 55, while the MACD remains below its signal line, indicating weakening momentum. Although the price finds short-term support above the SMA20 and SMA50, the news flow supports a bearish reaction. However, given uncertainties regarding the implementation timeline of the deal and the pace of production increases, any downside is likely to be limited. Therefore, I anticipate a slightly negative bias in the short term.

The historic oil agreement between Venezuela and the US could exert downward pressure on WTI crude prices amid expectations of increased supply. On the technical front, the RSI stands at 57, indicating a neutral stance, while the MACD remains positive but below its signal line, suggesting weak momentum. Prices are trading above both the 20-day and 50-day simple moving averages, yet the news flow could intensify selling pressure in the near term. Until the details of the agreement become clearer, WTI is likely to fluctuate around the $83 level, with downside risks prevailing.

News confirming a historic oil agreement between Venezuela and the United States could pressure oil prices on expectations of increased supply. XOM shares have already fallen 2.8% in the last 24 hours, with RSI at 36.9, indicating weak momentum. MACD is in negative territory and below the signal line, suggesting short-term downward momentum. Trading below both the SMA20 and SMA50 reinforces a bearish technical outlook. However, the news may already be largely priced in, so further downside potential could be limited.

The historic oil agreement between Venezuela and the United States could exert downward pressure on oil prices due to expectations of increased supply. However, for CVX, this development represents a positive reduction in geopolitical risk over the long term. Technically, the price is above the 20-day moving average, with the RSI at 54 in neutral territory, and the MACD above its signal line but still in negative territory. In the short term, the impact of the news may be limited, but current momentum and support levels support a slightly upward movement. Therefore, a sideways to slightly positive trend is expected over a 1-3 day horizon.