- Summary:
- Crude oil price falters as OPEC + alliance gets set to reduce the production curbs as from May 1, even as global oil demand falters.
The OPEC + alliance is due to meet this week to discuss the production curb policy going forward. Reuters on Tuesday cited an OPEC+ source close to the situation as saying that the alliance will stick with the current plan to start easing production cuts as from the start of May, with another meeting scheduled for June 2021 to review the situation.
Gains in the crude oil prices continue to be capped by demand concerns, especially as 3rd largest global importer India continues to struggle with the coronavirus pandemic which is threatening to rage out of control.
Technical Outlook
Price continues to trade within the bearish flag, with the 65.95 price level serving as the initial resistance barrier. The bulls have to break this level to allow for an ascent towards 66.81, with 67.74 and 70.01 serving as additional targets to the north.
On the other hand, a rejection at 65.95 allows crude oil prices to tank towards 64.26, taking out 64.96 along the way as the price candles aim to test the lower edge of the flag consolidation area. A breakdown here also takes out 64.26, opening the door towards deeper targets at 60.07 and 57.47. This move also needs to take out the pitstop at 62.21 to progress further to the south.
Brent Crude; Daily Chart
