Crude Oil jumps 4% on OPEC output cut agreement

WTI oil bounced above $54 per barrels in early US trading on news that OPEC reached a deal to cut production.

Cartel members and oil producers outside the group, led by Russia, agreed to reduce production by 1.2 million barrels per day, just under widely expected 1.3 million bpd.

Improved sentiment pushed the price nearly 4% for the day and signals further advance.

Fresh rally returned above broken 200WMA ($52.31), cracked falling 20SMA  ($53.67) and pressures recovery highs at $54.54, posted earlier this week, with sustained break higher to open way towards falling 30SMA ($56.80) and signal base at $50 zone.

North-heading daily indicators support the scenario, along with Morning Doji Star reversal pattern that is forming on weekly chart.

Res: 54.54; 55.89; 56.80; 58.14
Sup: 52.31; 51.99; 50.59; 50.00

Oil

The information contained in this document was obtained from sources believed to be reliable, but its accuracy or completeness cannot be guaranteed. Any opinions expressed herein are in good faith, but are subject to change without notice. No liability accepted whatsoever for any direct or consequential loss arising from the use of this document.

RELATED TOPICS