Oil shrugged off the staggering build up in yesterday’s US crude oil inventory report as it rose well over 10 million barrels. Price has found support over the prospect of production cuts by OPEC members allowing it to tread a little higher. Nonetheless, plans of implementation may face restrictions as major Oil producer Russia shows no solid interest in following along, thus adding another obstacle in the face of oil’s recent climb therefore maintaining the bearish outlook.
Buyers are starting to push oil prices up whilst attempting to overcome the resistance level at 57.30 and the 100-period moving average at 57.75. An ascending triangle is forming with a slope of higher lows meeting that level. A move is expected to be made in either direction, however, with price breaking above the Ichimoku cloud and an RSI close to the overbought threshold, it seems that there is room for oil to tread higher before making a decisive move.
Support: 56.38 / 55.23
Resistance: 57.93 / 58.21