Brent Crude Oil Calm Ahead of US Oil Rig Count Data
Crude oil price remains on an uptrend amid the unresolved OPEC+ crisis. On Friday, the coalition proposed to increase oil output by about 2 million bpd in the year’s second half. The proposal also included extending the current output cuts into the coming year.
However, UAE is against some of the embedded details; an aspect that has placed it at loggerheads with Saudi Arabia. The latter member state, which is the coalition’s de facto leader, insists on the need to compromise in order to reach an agreement. The divergent views have resulted in the indefinite postponement of the alliance’s crisis talks.
At the same time, gasoline prices in the US have risen to the highest level in seven years. At the current $3.13 per gallon, the prices have surged by about 44% from the past year. This comes as travelers prepare for the Fourth of July holiday.
Crude oil price has surged past the 77.00 mark as a reaction to the ongoing OPEC+ crisis. Brent futures, the benchmark for global oil, is up by 0.1% at 77.16. Over the past five sessions, the price has risen by about 5.11%. On Monday, it rose from an intraday low of 75.68 to a high of 77.25. It is currently trading at its highest level since October 2018. On a two-hour chart, it is above the 25 and 50-day exponential moving averages. With an RSI of 70.53, it is in the overbought territory.
I expect crude oil price to waver about 77.00 as the bulls gather enough momentum to hit the next target at 78. If that does not happen, it is likely to pull back to 76.50 or lower along the 25-day EMA at 76.
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