Brent oil hits 2019 high above $65

Brent oil rose to 2019 highs earlier today on hopes of deeper OPEC+ production cuts.
US oil output is seen rising to record highs this year. That could cap gains in oil prices.

Omkar Godbole FXStreet Contributor

Brent oil hit fresh year-to-date highs above $65.00 earlier today and looks set to extend the three-day winning streak on rising hopes of deeper supply cuts by major exporters.

As of writing, Brent oil is changing hands at $64.88 per barrel, having hit a 2019 high of $65.10 sixty minutes ago.

The market is paying little heed to US-China trade tensions amid rising hopes of a deeper production cut by OPEC+ (OPEC and non-OPEC countries like Russia).

Saudi Arabia, the de facto leader of OPEC, said earlier this week that it would reduce output even more than the deal called for. The Kingdom and its OPEC partners have agreed to cut crude output by a joint 1.2 million barrels per day (bpd).

Further, Russia is withholding supply to prop up prices. The nation's output has declined by 80,000-90,000 barrels per day from its level in October.

The US oil output, however, continues to counter the measures implemented by OPEC+. Analysts expect US oil production to rise past 12 million bpd soon, having hit a record 2 million bpd last year.

Technical Levels

1. R3 66.62
2. R2 65.69
3. R1 65.13
PP 64.2
1. S1 63.64
2. S2 62.71
3. S3 62.15

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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