February 6, OctaFX – The price of crude oil was little moved in the Asian session as Saudi Arabia and its Persian Gulf allies try to form a formal deal with Russia to manage the global oil market.
This move is intended to put a floor on oil prices and reduce the chances of declining prices. This comes as the cartel is under increased pressure from the United States to keep prices lower by increasing production. In recent years, Russia has worked very closely with OPEC, including reducing supplies to lift prices. More deliberations on this will take place in Vienna next week.
Crude Oil Price Technical Forecast
The price of Brent crude oil remained closer to yesterday’s low of 61.70. On the hourly chart, the pair is below the 25-day and 50-day EMA while the Parabolic SAR points to more downward movements.
The DeMarker indicator has moved closer to the oversold level. Today, the pair will likely see some major movements as EIA releases inventory data and as investors discuss the formalization of OPEC+.
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