OIL prices set to fly as OPEC plans to cut production!
Hi traders and welcome to EverythingFX!
Taking a look at the daily timeframe we can see Oil has been on a run since the start of the year from the $45 a barrel mark. With bullish price action on a 4-hour timeframe creating significant higher-low swings to the upside.
On Monday US President Donald Trump tweeted saying that OPEC should "relax" with its intention to cut Oil Production, creating a minor resistance at $57.50 per barrel pushing price into previous resistance now support at $55 a barrel.
Saudi Energy Minister Khalid al-Falih said OPEC is taking a measured approach to supply cuts in response to Donald Trump. OPEC Plus which refers to OPEC and a collection of Non-OPEC oil producers have since agreed on production cuts totally 1.2million barrels per day (bpd).
With a standard approach to Supply and Demand, OPEC cutting supply will most certainly increase demand, causing Oil prices to rise. Goldman Sachs has since commented that we could see $70-75 per barrels in the coming month provided OPEC don't change there mind.
On a technical standpoint, our next level of resistance is $65 a barrel of oil....