The benchmark Brent crude is in a moderate uptrend, trading around $ 66.60 a barrel. It looks like oil quotes have found an acceptable range, in which they move with a slight increase on the background of the expected decision of the Organization of the Petroleum Exporting Countries (OPEC +).
Yesterday, a videoconference was held between representatives of the OPEC + participants, during which they discussed the current situation on the energy market and in the world in general. As a result, it was decided to leave the current production quotas unchanged. This means that in May production will grow by 350 thousand barrels, in June – by 350 thousand, and in July – by another 440 thousand. According to the meeting participants, this will provide an opportunity to reach the planned production levels in 2021, taking into account the growing demand for “black gold”. In addition, the parties noted that they are monitoring the situation with the COVID-19 pandemic and, if necessary, are ready to make immediate decisions. The next cartel meeting is scheduled for June 1st.
The data on reserves from the American Petroleum Institute (API), according to which this indicator in the United States increased by 4.319 million barrels with an expected increase of 0.375 million barrels, is slightly restraining the rise in prices.
Support and resistance levels
On the global chart, the asset is growing smoothly within the next upward wave. Technical indicators are in the buy state: fast EMAs of the alligator indicator are moving above the signal one, and the histogram of the AO oscillator is trading in the buy zone.
Resistance levels: 67.50, 71.80
Support levels: 65.00, 60.30
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