Oil Prices Surge Over the Sentiments of Supply Cut

At the beginning of Tuesday, crude oil prices rose due to the strong bullish sentiment. While the expectations that producer cartel OPEC and


Crude oil prices rose due to the strong bullish sentiment. While the expectations that producer cartel OPEC and Russia would like to extend supply output cuts in support of low prices.

Earlier today, the US WTI crude futures were up 0.6% to $53.59. Looks like everyone is focusing on the upcoming meeting of the Organization of Petroleum Exporting Countries (OPEC) which is due on 25-26 July. The OPEC and non-OPEC members are due to decide about the extension of a crude oil output cut. The meeting will help decide the fate of crude oil prices. An extension in the output cut may trigger a bullish trend in oil prices. Conversely, we may see a dramatic sell-off in crude oil prices if cartel decides not to extend the output cut.

As you know, Russia is the cartel’s leading member and does play a significant role in supporting crude oil prices. The market is still looking to hear a clear cut answer on a production cut. Recently, the Russian Energy Minister Alexander Novak remarked that there was a need to control the oil market to take a sensible decision in July.

Key Trading Levels Today

Support Resistance
53.68 53.93
53.52 54.02
53.27 54.27
Key Trading Level: 53.77

ABOUT THE AUTHOR See More
Arslan Butt
Index & Commodity Analyst
Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics.His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker.His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.

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