Brent crude has been growing since the middle of the week, overcoming the previous decline 5% and updating new local highs. Bulls broke the level of $63.5 and are actively trying to get through $64.0 per barrel. Since early October, oil has been moving within an ascending price channel. If the current dynamics of local movement up continues, it’s likely to reach the upper boundary of the channel, which is close to the level of $65.0.
The local uptrend is caused by positive news background. Reuters reported that OPEC + is likely to extend existing oil production restrictions until mid-2020. The decision can be taken at OPEC+ meeting in Vienna on December 5-6. The cartel wants to give a positive momentum to the market. Saudi Arabia wants to stabilize or raise oil prices prior to Saudi Aramco’s IPO. The Wall Street Journal published information that China invited senior US officials to a new round of face-to-face talks in Beijing. This adds optimism about a partial signing of a trade deal.