April 8, OctaFX – Crude oil price jumped in overnight trading as traders cheered the ongoing supply cuts by OPEC. These cuts started after the December meeting in Vienna during which officials announced that they will cut production in a bid to rebalance the price, which had fallen to yearly lows.
This move was supported by Saudi Arabia and Russia, which are the second and largest producers in the world. The price has also moved up because of the sanctions the US has placed on Venezuela, which has the biggest oil reserves in the world. The price rose even as data from Baker Hughes showed that wells rose to 831 from the previous 816.
XBRUSD price analysis - Will the upward trend continue?
Crude oil price jumped to a YTD high. Brent and WTI reached highs of $70.50 and $63.45 respectively. On the daily chart, the price has been on an upward trend since December 12, when it traded at $50. The current price is slightly above the 50% Fibonacci Retracement level and above the 25-day and 50-day moving averages.
The signal line and histogram of MACD has remained above the neutral line while the momentum indicator has stabilized above the 100 level. The price will likely continue moving higher ahead of the OPEC meeting expected in the coming week.
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