Oil is trading to a three-week high after The House of Saudi and Russia said they were extending supply cuts into 2018. Here’s a look at the pre-market action, up nearly 3%:
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The 30 Minute chart shows resistance around $49, current levels:
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Over the last year we have been basically range bound, with $55 being the lid. We are now right smack dab in the middle again near $50/brl:
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Here’s the latest news from Reuters:
If you enjoy the content at iBankCoin, please follow us on TwitterEnergy ministers from the two countries said on Monday that supply cuts should be prolonged for nine months, until March 2018. That is longer than the optional six-month extension specified in the deal.
Brent crude, the global benchmark, had risen $1.54 to $52.38 a barrel by 1005 GMT (6.05 a.m. ET) and traded intraday at $52.52, the highest since April 24. U.S. crude was up $1.48 at $49.32 a barrel.
Oil traders were surprised by the strong wording of the announcement, although it remained to be seen whether all countries participating in the deal would agree with the Saudi-Russian stance.
Some analysts doubted producers would stick to a prolonged curb.
“Extending the cuts until March 2018 would take account of the fact that demand in the first quarter of a year is lowest for seasonal reasons,” said Carsten Fritsch, analyst at Commerzbank.
“That said, we are skeptical about Russia’s willingness to actively participate in any extended cuts.”
Thanks for the update RC, and hope you had a good weekend. It’ll be curious to see if that resistance at $49 can crack. Either way it’ll be interesting to see how this next battle in OPEC vs. shale drillers shakes out. Good luck this week! 🙂
Off topic: Looks like the $MOMO from top 100 gonna squeeze this week.
Curious to see where it ends the week!
i have some beautiful property in florida to sell,.. believe me
sure i’d believe whatever the Russians and saudis say,……cheap talk
they are basically saying they will manipulate in any means necesasary,
all the while pumping like mad
plus any drop (which is BS) by Saudi or Russians, will be counterbalanced by American+Canadian pumping like mad
Oil will eventually rise (probably to around $60 ) ahead of the Aramco IPO. Not sure when that date is, but once more chatter about the IPO comes forward, that’s my queue to get long oil. Or, just start a very small position and make consistent DCA purchases and wait.