With the beginning of the week, OPEC+ meeting was occurred at 8:00 GMT. And this meeting had it effects slightly on the market. Early this day, this organization who have the upper hand and the control over the supply and demand on oil, have announced that they will maintain their current oil output policy. which summarize, an addition of 400,000 barrels per day to the market in November, and an increase in supply to reduce the rallying in oil prices. Reacting to the report above, WTI performed a sharp rebound from its daily lows at $75.33.
WTI crude oil secured three days gains around the highest level ever since September 2018, given that the black gold failed on exceeding the multiple tops marked since early July at 75.80 level, WTI is expected to witness another pullback move. A daily closing beyond this level will accelerate the bullish movement and move towards $76.00 then move towards October 2018 peak at 76.90. this level will gain the market’s attention. In case bulls dominate beyond this level, June 2012 low will be its next direction at $77.30, this level will be the key to a rally towards $80.00 level.
Alternatively, if the black gold fails to break above $75.80 level, a bearish movement will occur. Its first support from late August is near $73.90 and the second support is at $72.10. A break below this level will make it vulnerable to test near the early September tops at $70.40.
Finally, according to the fundamental news, a further upside appears mysterious along with the cautions trading in European equities. Rising inflation risks in US, and China Evergrande concerns are capping the upside in a higher-yielding oil.
