Are Brent Crude Prices Moving up even with OPEC Lowering Production?

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Since last week Brent crude prices have been rising after an initial fall as a result of the OPEC+ decision to restrict oil production on May 25. The merging of the prices took place even though the US has not only increased their number of oil drilling but their oil reserves also. OPEC’s latest report published yesterday dealt with the condition of the oils market. In contradiction to the resolve the group showed when entering an agreement with Russia to stifle oil production, this report was much more tepid what it did show is ramped up production in the month of May even though most OPEC+ members honored the agreement to slow oil output.

As mentioned in the previous article the US is a hot-bed of economic activity today – Oil and Petrochemical Data (which is forecasted to drop) at 4.00 pm, Retail Sales (which is also expected to go down slightly),the Consumer Price Index (which seems like it will also go up) at 2.30 pm and finally the much anticipated (even if most traders already assume will go up) the FOMC Interest Rate Decision at 8.00 pm.

Support and resistance
Resistance levels: 48.60, 49.50, 50.00, 51.30.
Support levels: 47.50, 46.75, 45.90.






This article comprises the personal view and opinion of the STO Investment Research Desk and at no time should be construed as Investment Advice.

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