Oil price remains at the back foot as all eyes turn to OPEC+ meeting
WTI oil price is moving within tight range on Wednesday but holding above important 10DMA support ($23.49) which contained Tuesday’s over $3 fall.
The sentiment soured after OPEC+ delayed its meeting, originally scheduled for 6 Apr and oil was sold further, but optimism that the cartel members and their allies will reach agreement on Thursday to cut production significantly in attempts to stabilize the oil market.
Bullish bias is expected to remain while the price action holds above 10DMA, but warning signals come from daily indicators as momentum broke into negative territory and stochastic heads lower.
However, fundamentals are likely to be again the key driver and the outcome of tomorrow’s meeting is expected to generate clearer direction signals.
If OPEC+ makes a deal for 10-15 mln bps production cut that would add to due to crisis already lowered oil output and inflate oil price for $30+ attempts.
If the biggest oil producers fail to reach a deal then the risk of retesting critical $20 support zone would significantly increase.
Res: 24.95; 25.12; 27.21; 28.21
Sup: 24.12; 23.48; 23.01; 21.57