Oil sold off on Friday following the Reuters report saying that OPEC+ could discuss an oil output hike larger than 411,000 bpd for July over the weekend. That of course created expectations for a larger production increase and therefore weighed on the market.
The group though underdelivered on those expectations as it hiked by 411,000 bpd, which is the same amount of May and June. This triggered a rally as the market readjusted to new conditions.
In the bigger picture, the demand side continues to improve as the global fiscal and monetary easing filters through and the trade war de-escalation trend remains intact. The OPEC+ production hikes have been keeping a lid on the upside, but the market is now starting to look forward.
On the daily chart, we can see that the price is now approaching once again the key resistance zone around the 64.00 price area. That's where we can expect the sellers to step in to position for a drop back into the 55.00 low. The buyers, on the other hand, will want to see the price breaking above the resistance and the trendline to open the door for a rally into the 72.00 handle.
On the 4 hour chart, we can see that we've been trading in a range for a few weeks. Following the Friday's news, the buyers stepped in around the 60.00 support zone to position for a rally back into the resistance and increase the bullish bets following the weekend news. The sellers will want to see the price breaking below the support to increase the bearish bets into the 55.00 low.
This article was written by Giuseppe Dellamotta at www.forexlive.com.Hence then, the article about crude oil rallies as opec hikes output by less than expected was published today ( ) and is available on forex live ( Middle East ) The editorial team at PressBee has edited and verified it, and it may have been modified, fully republished, or quoted. You can read and follow the updates of this news or article from its original source.
Read More Details
Finally We wish PressBee provided you with enough information of ( Crude oil rallies as OPEC+ hikes output by less than expected )
Also on site :
- Gold Star Distribution Inc., Issues Recall of Certain FDA-Regulated Products in Three States Including Drugs, Devices, Cosmetics, Human Foods, and Pet Foods
- ’Beverly Hills, 90210’s Jason Priestley Shares Bold Callout After ‘Worst’ Travel Experience
- Central African Republic election: Who’s running and what’s at stake?