Oil remained supported ahead of the OPEC Plus committee later this week and as Saudi Arabia ousted its energy minister. The WTI future remains unchanged so far today, as it is trading around $56.70 per barrel.
USOIL saw a high of USD 57.28 during the European AM session after Saudi Arabia’s new Energy Minister signalled that there won’t be any drastic shifts in policy. Saudi Arabia over the weekend dismissed the previous minister who was one of the architects of the OPEC Plus output cuts with Russia and other producers. The new minister will join some of his OPEC Plus colleagues at the Joint Ministerial Monitoring Committee on Thursday.
Beyond the fundamental analysis of USOil performance, the technical picture of Oil looks positive, despite the choppy price action today, as the asset holds above 20-, 50- and 200-day SMA for a third consecutive day. This followed the break of the 3-month downchannel from 60.92 high to 50.41 low.
The asset has also formed a sideways range since August 13, which it has not managed to break yet, but it retests the upper barrier of the range at 57.50 for a third consecutive session, suggesting the bullish momentum holds.
Momentum indicators meanwhile are neutral but are matching the rising bulls’ arrival. MACD has been flattened to zero after the decline seen in the mid of August, RSI is above 55 for the first time since mid-July, and Stochastics are positively configured retesting 80 barrier.
The USOIL is at a significant point, as a move above the Resistance level at 57.50 level would be a key break, which reflects the turn into bullish outlook in the long term and opens the doors towards 58.80, 59.70 and 60 area. Immediate Support is set on the clash of 200- and 50- day SMA, at 56.15 level.
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