Crude Oil Bounce off Support – Supply Cut Looms

On Friday, the WTI crude oil prices rose amid expectations of supply cuts from OPEC, although record US production moved. As per US investment bank Jefferies, “The Saudis have already indicated they will reduce output by 500,000 bpd in December, and early indications are that OPEC will target 1+ million bpd of production cuts at the next General Meeting on December 6”. It’s mostly because of abundant supply as EIA reached another record last week at 11.7 million bpd.

WTI Crude Oil – Technical Outlook
Crude oil was holding above a very significant support level of $55. It formed a hammer pattern followed by a strong bearish trend which managed to support oil above $55. On the daily chart, oil is trading at $57.20 with an immediate support near $56.65. The intra-day resistance can be found at $57.65 and the violation of this level can give us further bullish trend until $58.50.

Support Resistance
55.9 57.56
55.02 58.34
53.36 60
Key Trading Level: 56.68

WTI Crude Oil – Trading Plan
Today, $56.65 is a very crucial trading level and crude oil can stay bullish at this level to target $57.65 and $58.

Good luck!