- Summary:
- Reports that OPEC + alliance could roll over the existing production curbs into April to curb fragility in demand make a $70 crude oil price viable.
Crude oil prices on the Brent crude benchmark are slightly higher today, but traders have had to endure a very choppy day of trading as markets await the decision of the OPEC + alliance on output.
Yesterday’s sharp rise in crude oil inventories did little to stop the recovery of Brent crude, as feelers from the meeting pointed to a rollover of the existing output quota. These feelers continue to hit the market today after Reuters cited some OPEC sources as confirming rollovers into April, citing fragility in global demand as a reason. Despite choppy price action, Brent crude is up on the day by 0.59%.
Technical Levels to Watch
The daily candle was rebuffed at the 64.26 resistance, very close to the ascending trendline which now acts as a resistance. This trendline must be surmounted by bulls for crude oil price to hit the next upside target at 65.95. Above this level, barriers lie at 66.81 and 67.55. These barriers also have to be taken out for crude oil price to form the higher high that facilitates further recovery in price towards $70.
On the flip side, a rejection at the current resistance, followed by a pullback will allow bears to push prices towards 62.21, with 60.07 and 57.47 lining up as additional downside targets.
Brent Crude; Daily Chart
