OPEC+'s production constraints are continuing to keep barrel costs bolstered, though further action could be required from the oil conglomerate if further upside is to be seen as prices face a bit of a pressure after being denied by the $53 level. On the other hand, Saudi Arabian Energy Minister Al-Falih was on the wires during yesterday's session, via Reuters, noting that it will take time for the production cuts to be reflected on the market. He further said that the OPEC+ 1.2 million bpd cuts will have a 'strong impact' on the market and they will meet commitments to cut output while adding that the global economy is strong and there is no cause for worry.
After hitting a high of $53.29, Crude prices faced strong resistance and retreated towards the $51 level. The price is currently hovering just above the $51 level with a bearish momentum. However, as long as the $50 level is not violated to the downside, our view and target of $53.89 per barrel is still the same in the medium term.
Support: 49.49 / 48.28
Resistance: 50.29 / 51.83