- Summary:
- Brent Crude Oil Price Forecast: UKOIL turned green on Friday but the market sentiment remained mixed on the effectiveness of the OPEC+ cuts.
After a very volatile session on Thursday due to the OPEC+ meeting, Brent crude oil price turned green on Friday. At press time, the price of the British benchmark was up 0.37% after a 2.69% drop on its previous trading day.
On Thursday, OPEC+ countries announced an additional production cut of 900 barrels per day. Considering the already in-effect volunteer production cuts, this amounts to an overall supply reduction of 2.2 million barrels per day.
As a result, Brent oil prices shot up to $84.57 right after the conclusion of the meeting. However, bulls couldn’t gain strength above the $84 resistance, and the price closed the day at $80.39. This occurred due to the lack of clarity in the details of the additional production cuts by most countries.
If we analyze the Brent oil price chart in the 4-hour timeframe, we can identify a downward trendline that is suppressing the prices. This diagonal resistance is marked on the following chart. For the outlook on the UKOIL to become bullish again, bulls need to break out of this trendline.
