Gasoline Prices Remain High as OPEC Holds Back on Output

FxNews—US gasoline futures climbed to $2 per gallon, tracking oil prices higher after OPEC+ announced it would postpone a planned production increase by one month. OPEC had initially scheduled a 180,000 barrels-per-day rise for December.

Renewed tensions in the Middle East further boosted energy-related commodities. Furthermore, in the US, the latest Energy Information Administration data indicated a slight rise in gas demand to 9.15 million barrels per day. In comparison, gasoline inventories declined to 210.9 million barrels amid lower production levels.

Gasoline Analysis – 5-November-2024

As of this writing, Gasoline trades at approximately $2.06, indicating the Stochastic Oscillator overbought signal. Additionally, the Awesome Oscillator bars turned red recently, meaning the bull market weakens. On the other hand, the Gasoline price is above the 100-period simple moving average, meaning the primary trend is bullish.

Overall, the technical indicators suggest that while Gasline’s primary trend is bullish, the price might soon experience bearish pressure.

• Also read: WTI Crude Jumps 3% as OPEC+ Extends Production Cuts

Will Gasoline Drop Below $2.048 and Trigger Bearish Trend

The 38.2% Fibonacci retracement level at $2.048 is the immediate support. From a technical perspective, a new bearish wave would form if Gasoline drops below $2.048. In this scenario, the bears might initially target the October 18 low at $2.01, the 23.6% Fibonacci.

On the other hand, as long as the price is above the 38.2% Fibonacci, the market outlook remains bullish. Its next target is $2.094, the October 22 high.

• Next read: NATGAS Faces Major Resistance with Middle East Calm

Gasoline Support and Resistance Levels – 5-November-2024

Traders and investors should closely monitor the key levels below to make informed decisions and adjust their strategies accordingly as market conditions shift.

• Support: 2.48 / 2.01 / 1.942
• Resistance: 2.094 / 2.11 / 2.16