Crude oil unbothered by the Saudi Arabia push for faster production increases

Yesterday, we got the news that Saudi Arabia was pushing for OPEC+ to maintain its faster pace of oil
production increases in the coming months, aiming to regain market share
rather than support prices.

The news weighed on the market but was quickly faded as the negative supply news continue to have less and less of an impact on prices. This is generally a signal that the market has factored that in and it’s now looking through it.

The thing to watch is the demand side. That should keep on improving in the next months with a renewed trade war as the main risk for the outlook.

On the 4 hour chart, we can see that we’ve been ranging for a month now between the 60.00 support and the 64.00 resistance. The market participants will likely continue to play the range until we get a breakout on either side. For now, a breakout to the upside remains the base case, and in such an instance, the 72.00 level will be the next target.

On the 1 hour chart, we can see that we have a smaller range now between the 62.18 support and the 64.00 resistance. Again, participants will keep on playing the range until we get a breakout on either side.

This article was written by Giuseppe Dellamotta at www.forexlive.com.