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Crude Oil Outlook: Brent Lower Ahead of Crucial OPEC Meeting


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BRENT CRUDE OIL: TECHNICAL LEVELS TO CONSIDER

Crude oil prices ramped up on Monday evening into the early hours of Tuesday as news of an agreed compromise on the much-deliberated Russian oil ban was confirmed. Since then, we have seen a stark drop from the recent high as OPEC decides whether the group will increase output to make up for some of Russia’s likely reduced output.

After breaking above the zone of resistance ($115.50 – $118.50), oil prices tested $120.50 (IG chart) where bullish momentum ultimately reversed. Brent crude oil has dropped below the crucial zone, this time seen as support on the way down, and trades below $114 at around $112.90 ahead of the OPEC + meeting. Support lies at the round number of $110, which could come into play if the market believes any increased capacity to offset lost Russian output is achievable.

Brent Crude Oil Daily Chart

Crude Oil Outlook: Brent Lower Ahead of Crucial OPEC Meeting

Source: IG, prepared by Richard Snow

 

Jun 2, 2022 | DailyFX
Richard Snow, Analyst

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