Oil price rises ahead of expected OPEC+ production cut extension

WTI oil price rose around 1.7% on Friday, in the biggest daily advance this week, as the sentiment turned positive on expectations that OPEC+ group will extend its production cut in the second quarter.

The decision will be announced in coming days and expected to offer fresh boost to oil prices, as a number of cartel countries will extend their voluntary production cuts until the end of the year.

The WTI contract is also on track for bullish weekly close and third consecutive monthly gain, which adds to bullish outlook.

Bulls are on the way to register eventual close above pivotal Fibo barrier at $78.75 (50% retracement of $89.81/$67.70 downtrend) after several rejections, which will generate fresh bullish signal.

Psychological $80 barrier has been cracked and firm break here to further strengthen near-term structure for extension towards next target at $81.36 *Fibo 61.8%).

Bullish daily technical studies (strengthening positive momentum / MA’s in bullish setup) underpin the action, with broken Fibo level at $78.75, reverted to support and expected to keep the downside protected.

Res: 80.48; 81.02; 81.36; 82.21
Sup: 78.75; 78.08; 77.86; 77.02