OPEC deal extension crude oil price impact

Saudi Arabia and Russia proposed to prolong the oil cut deal until the March of 2018. ADS Securities talk about OPEC deal extension crude oil price impact.

16 May, ADS Securities – The Brent crude traded as high as $52.63 in the previous session, before closing at $51.82 after the energy ministers from Saudi Arabia and Russia announced to extend the OPEC production-cut deal from the middle of this year until the end of March 2018 to tackle oversupply in the market.

OPEC deal extension crude oil price impact

As of now, the price action appears to be oscillating between a narrow range of $51.80-$52.15, suggesting at consolidation in the near term.

However, the MACD indicator is inclining towards south, hinting at likely weakness in the coming session. Key support is seen at the $51.60 level, followed by $51.40 where EMA 55 is trading and $51.15 levels. A move back below the latter might trigger bearish potential in the Brent crude. On the other hand, the key technical barrier is placed at the $52.15 level, followed by the $52.50 and $52.65 levels.

OPEC deal extension crude oil price impact

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