Oil prices get support from the fact that traders expect OPEC to do whatever is needed to maintain the current price levels. That of course is a bit of a gamble as the current production cuts among OPEC countries are voluntary, and can only be confirmed after real export numbers are published.. Should OPEC really want to matter, not only a prolonging but a deepening further of these production cuts could be needed.
Oil bulls are focusing on the double top near $79.66, ahead of $80.00. Once through that area, quite a large room opens up towards $86.90, which would mean a nearly 10% gain. Just ahead of $90, $89.64 could stand in the way of heading towards $100.00.
On the downside, the 200-day Simple Moving average (SMA) near $77.72 is the first point of contact to provide some support. Quite close following suit are the 100-day and the 55-day SMAs near $76.25 and $74.83, respectively. Add the pivotal level near $75.27, and it looks like the downside is very limited and well-equipped to resist the selling pressure
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