CL New York crude oil - OPEC+ accelerates production increase, triggering supply concerns, oil prices fall

Oil prices fell more than $1 to settle at multi-year lows on Monday as OPEC+'s decision to accelerate production cuts stoked concerns about rising global supplies amid an uncertain demand outlook. OPEC+ is an alliance of oil-producing countries including the Organization of the Petroleum Exporting Countries (OPEC) and its allies including Russia. U.S. West Texas Intermediate (WTI) crude futures settled at $57.13 a barrel, down $1.16, or 2%. Last week, U.S. crude fell 7.5%. On Saturday, OPEC+ agreed to further accelerate oil production increases for the second consecutive month, with output rising by 411,000 barrels per day in June. The production increase by eight OPEC+ members in June will bring the total increase in April, May and June to 960,000 barrels per day.

As can be seen from the technical chart, the RSI and stochastic index rebounded from the oversold area and formed a double bottom in early April. It is expected that oil prices have begun to form a bottom and are expected to make a bigger rebound process. Oil prices hit $55.30 on Monday, after hitting a low of $55.12 on April 9. It is estimated that $55 will be a very meaningful reference at present; support is then estimated to be at $54 and $51.60, and then point to the $50. Resistance levels are expected to be at 57.80 and 60. The greatest resistance will be seen at the 25-day moving average of $62.20. The key reference is the $65 level that failed to be clearly broken in late April.

Forecast range:
Resistance 57.80 – 60.00 – 62.20 – 65.00
Support 55.00* - 54.00 – 51.60 – 50.00**

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