Above $74: Brent oil rises by $1 ahead of OPEC decision

Brent oil is solidly bid in Asia, trades above $74/barrel.
Uncertainty over a possible rise in OPEC output has likely put a bid under oil prices, according to Reuters.

Omkar Godbole FXStreet Contributor

Brent oil clocked a session high of $74.21 earlier today and was last seen trading at $74.00 - up 1.25 percent on the day.

The black gold has likely picked up a bid due to uncertainty over whether the Organization of the Petroleum Exporting Countries (OPEC) would be able to lift production.

Saudi minister said there is broad support for the proposal to raise crude output by one million barrels a day, according to the Wall Street Journal, however, Iran is reportedly playing a hardball. The resulting uncertainty could have lifted oil prices.

Further, Russia and Saudi Arabia have been calling for an output hike since last few weeks. So, the markets have likely priced-in the output hike. Moreover, brent is down 8.06 percent decline from the 2018 high of $80.49 reached in May.

Hence, oil might rise if OPEC meets market expectation, or the output hike is less than expected.

Brent Oil Technical Levels

Resistance: $75.70 (50-day moving average), $77.80 (June 1 high), $80.49 (May high).

Support: $72.93 (previous day's low), $72.45 (June 18 low), $72.00 (psychological support).

Author

Omkar Godbole

FXStreet Contributor

Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.

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