WTI Price Forecast: Trades broadly sideways near 20-day EMA around $60.00

• The Oil price faces selling pressure as OPEC+ expresses further oil supply increases.
• The US Senate advances a government funding bill to the House.
• WTI trades inside the Descending Triangle formation on a daily timeframe.

West Texas Intermediate (WTI), futures on NYMEX, trades 0.5% lower to near $5975 during the early European session on Tuesday. The Oil price faces pressure on oversupply worries, following the announcement from the OPEC+ that it will increase December output targets by 137,000 barrels per day. The amount of supply increases is similar to what had been targeted for October and November.

Theoretically, growing Oil oversupply concerns diminish the appeal of the Oil price.

The Oil price fails to capitalize on improving market sentiment, driven by hopes of the United States (US) government reopening. On Monday, Democratic lawmakers agreed to support the government funding bill in the US Senate and advanced it to the Republican-controlled House of Representatives. The reopening of US federal agencies after the historically longest shutdown would resume the execution of government spending, a scenario that will boost Oil demand.

Going forward, investors will focus on the OPEC Monthly Market report and the EIA Crude Oil Stockpiles data for the week ending November 7, which will be published on Wednesday and Thursday, respectively.

WTI trades in a tight range around $60.00 for almost two weeks. The Oil price remains sticky near the 20-day Exponential Moving Average (EMA), indicating a sideways trend.

On a broader note, the Oil price trades inside the Descending Triangle formation. The downward-sloping border of the chart pattern is plotted from the July 30 high near $70.00. Meanwhile, the horizontal resistance is placed from the April 9 low around $54.80.

The 14-day Relative Strength Index (RSI) oscillates inside the 40.00-60.00 range, indicating a sharp volatility contraction.

The Oil price could slide to near the October 20 high of $57.43 and the April 9 low around $54.80 if it breaks below the November 6 low of $58.75.

On the flip side, a recovery move the Oil price above the August 6 high of $66.00 would open the door towards the July 9 high of $68.00, followed by the July 30 high of $70.00.

WTI daily chart