OPEC+ Extends Oil Production Cuts, Brent Crude Prices Surge Above $75 Per Barrel
In a surprising move, OPEC+ has decided to extend its oil production cuts, leading to a surge in Brent Crude prices above $75 per barrel. The market opened $1 higher following the weekend, reaching a high of $75.30 before the US open.
OPEC Secretary General, Haitham Al Ghais, expressed optimism about oil demand despite challenges. He emphasized the positive outlook for both short and long-term demand, highlighting the growth in China and the strength of the US economy as positive factors.
From a technical analysis standpoint, Brent Crude faces resistance at $76.35, with support around $72.39. The daily candle is currently showing signs of bearish pressure, which could lead to a retest of support levels at $72.39 and $71.00.
Looking ahead, the week could be very volatile for oil prices, especially with the upcoming US elections, Central Bank meetings, and the potential strike by Iran on Israel. The impact of these events could further influence oil prices in the near term.
Overall, the extension of oil production cuts by OPEC+ has led to a surge in Brent Crude prices, with potential hurdles at $76.35 and support at $72.39. Traders and investors should closely monitor market developments and geopolitical events to make informed decisions about their investments.