The global oil producers' recent comments on their intention to leave the abatement agreement continue to keep the raw material close to $65 a barrel. The Organization of Petroleum Exporting Countries (OPEC) is expected to meet on June 22 at the headquarters in Vienna, along with the non-OPEC Russia, to discuss production policy.
Saudi Arabia and Russia have already said that redundancies could be reduced after receiving invitations from consumers, including the US, China and India, to support global demand.
At the same time, oil traders will continue to weigh the steady increase in US production next week, as drilling growth highlights worries about rising US production.
If Russia and Saudi Arabia reaffirm their intentions to increase production at the forthcoming meeting, oil will surely suffer very serious damages, with prices below $60 being very likely. Otherwise, I do not expect strong support for black gold.
The technical price has come out of the ascending as it is currently hung in anticipation of a foundation that will be decisive for the direction. If Russia and Saudi Arabia confirm the intentions, I expect a first level of support of around $62, if it is overcome then $ 59.80 is a very likely price. As for the net speculative positions of pro-traders, long positions are significantly reduced, while we see an increase in short positions. The price realizes a breakthrough on the upward channel, along with a major horizon and 23.6% Fibonacci correction. The CCI50 went into a negative area, indicating that the raw material is in a downward trend. 50 and 200SMA are still beaded.
Source: Bloomberg Pro Terminal
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