Crude oil price jumps to $56.50 following the supply cuts from OPEC

The price of WTI crude oil reached a low of $42 in December. Since then, the pair has been making higher highs and higher lows and today, it reached a high of $56.50. This was the highest level since November last year.

February 20, OctaFX – The price of crude oil continued its steady climb as investors cheered the supply cuts from OPEC and the US sanctions on Iran and Venezuela. Investors also believe that the demand will be steady, even with the slowing global economy.

The price of Brent and WTI crude reached a high of $66.5 and $56.8 respectively. The price increase comes at a time when US production has been increasing. Last week, Baker Hughes revealed that US oil rigs had increased by 4.

Crude oil price technical forecast

On the daily chart, this level is also along the 38.2% Fibonacci Retracement level. On the daily chart, this price is above all the medium, short, and long-term exponential moving averages.

The momentum indicator remains above the 100 level. There is a likelihood that the price will continue moving upwards, with the next resistance level being $60, which is also the 50% Fibonacci level.


This article was provided by OctaFX. It should NOT substitute for professional marketing consulting. Forex margin trading involves substantial risks. Forex margin trading exposes participants to risks including, but not limited to, changes in political conditions, economic factors, and other factors. All of which may substantially affect the price or availability of one or more foreign currencies.

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