WTI Surges as OPEC+ Extends Supply Cut – Technical Outlook
Arslan Butt • 1 min read
Early in the Asian session, WTI crude oil prices surged dramatically over $1 after Saudi Arabia Crown and Iraq president settled on the extension of supply cuts for another six to nine months before the OPEC meeting in Vienna.
WTI crude oil surged around $1.36, or 2.3%, to $59.83 a barrel after earlier placing a high of $60.10, the highest in the past five weeks.
Meanwhile, Organization of the Petroleum Exporting Countries (OPEC) and its cartels look set to extend oil supply cuts until the end of 2019, during the meeting between top producers on Sunday endorsed a policy pointed towards the increasing the price of WTI crude oil.
On Sunday, the Russian President Vladimir Putin announced that he had a deal with Saudi Arabia to extend existing supply cuts of 1.2 million barrels per day for the next six to nine months.
WTI Crude Oil – Technical Outlook
On the technical side, crude oil has violated the long-held resistance level of $59.50. The resistance level was working as a triple top and needed a solid fundamental reason to break out. Well, Saudi and Russia gave that reason on Sunday. For now, US Oil may find an immediate resistance at $61, the 78.6% Fibonacci support level, along with support around $59.50.
Key Trading Level: 58.59
WTI Crude Oil – Trade Idea
The idea is to stay bullish over 59.80 with a stop loss below 58.50 and take profit of around 60.56 and 61.