Crude Oil Extends Gains – Confidence Over Collaborated Effort Deal on Coronavirus Plays
On Tuesday, WTI crude oil prices extended gains on expectations that central banks are expected to perform financial stimulus to neutralize the consequences of the coronavirus break and increasing confidence that OPEC will order more extensive output cuts this week.
The US crude oil futures gained 4.4% to $46.75 a barrel, halting a six-session losing streak. Brent jumped 4.5% to $51.90 a barrel. Traders expect a meeting of the Organization of the Petroleum Exporting Countries (OPEC), scheduled for later in the week, to result in deepening existing output cuts to stabilize crude prices.
With lingering concerns over WTI crude oil demand amid the coronavirus outbreak, numerous vital members of the Organization of the Petroleum Exporting Countries (OPEC) are pondering a more significant oil production cut of probably 1 million bpd. The earlier recommendation was for a further reduction of 600,000 bpd.
OPEC and its associates, a group known as OPEC+, are anticipated to declare deeper production cuts at their conference on March 5-6 in Vienna. The organization had agreed to cut production by 1.7 million bpd in a settlement that operates to the end of March.
Crude Oil – Daily Technical Levels
Support Resistance
45.82 48.48
44.05 49.38
41.38 52.04
Pivot Point 46.71
WTI crude oil prices may find an immediate resistance around 48.30, and bullish breakout of this level can extend crude oil prices towards the next resistance level, which holds around 49.60. On the lower side, crude oil may find support near 47.30. Let’s stay bullish today to target 49.
Good luck!
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