Oil price extends advance as OPEC+ rolls over production cuts

WTI oil price rose above $79 for the first time in two weeks on Thursday, as fresh bullish acceleration extends into third consecutive day.

The OPEC+ decided to extend its supply cuts in 2024, as the cartel met today, after meeting scheduled for Nov 26 was postponed, adding support to oil price.

The top world oil producers agreed preliminary cut of over 1 million barrels per day, including Saudi Arabia extending the voluntary cut since July, with smaller contribution from other members.

The OPEC+ members also discussed potential bigger cuts in 2024, with extension to 2 million barrels per day being on the table.

Tighter oil market will offer fresh support to oil and continue to underpin the price in coming months.

Today’s acceleration broke above significant barrier at $78.04 (200DMA) and cracked daily Kijun-sen ($79.12) increasing pressure on psychological $80 resistance.

Expect initial bullish signal on close above 200DMA, which reverted to solid support, with extension through $80 and $81 pivots (psychological / Fibo 38.2% of $95.00/$72.36) to further strengthen bullish structure and open way for further advance.

Improving daily technical studies add to positive near-term outlook, though bulls may face headwinds at $80 zone and enter consolidation before resuming.

Bullish bias expected to remain intact above 200DMA, while fall below converging 20/10DMA’s ($77.07/$76.78) would neutralize bulls.

Res: 79.57; 80.00; 81.00; 81.52
Sup: 78.07; 77.70; 76.78; 74.04