Brent crude oil quotes slightly decrease with the opening of the European trading session. The meeting of OPEC+ will be held today in Vienna.
Shortly before, OPEC+ Monitoring Committee recommended increasing oil production by 1 million barrels, extending the agreement until the end of 2018. Some of the participants of the agreement, in particular Iran, opposed this decision.
The second significant factor for the course is the report from Baker Hughes on the number of new drilling rigs. Last week, this indicator reached 863 units, which is a record since 2015. According to preliminary calculations of economists, oil rate should be higher than 48–49 dollars per barrel, so that the shale industry would bring marginal profits and pay all the costs. At the moment, the exchange rate is much higher than expected, so growth in the shale industry is detected. If the trend continues, it will put pressure on prices because of the growth of the aggregate supply.
Support and resistance
Stochastic is at 67 points and does not provide a signal for the opening of positions.
Resistance levels: 74.21, 75.00.
Support levels: 73.43, 72.66.
Open short positions after the breakdown of the support level of 73.43 with take-profit 72.66 and stop-loss at 74.21.
Brent Crude Oil
|Support levels||72.66, 73.43, 74.21, 75.00|
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