Current trend

Before the OPEC meeting and against the rhetoric of the authorities of Saudi Arabia and Russia, WTI Crude Oil quotes reached the resistance area of 83.40–80.95.

Yesterday, the Kingdom’s Ministry of Energy announced that the voluntary cut in oil production by 1.0M barrels per day to 9.0M barrels per day, which supplements the earlier decision to reduce production by 0.5M barrels per day, will be extended until the end of September. In turn, Russian Energy Minister, Alexander Novak, said that the country would reduce oil supplies by another 0.3M barrels per day due to a decrease in exports.

The upward dynamics and retention of WTI Crude Oil quotes above 80.00 may continue until the meeting of the Ministerial Monitoring Committee of the countries participating in the agreement, which will be held online today. Depending on the decisions of the group, the price may reverse upwards or resume the global fall to around 74.50.

The long-term trend is downward with a border around 83.40–80.95, and while it is holding, it is worth considering sales with the target at 74.50, in case of breakdown of which the quotes may reach 67.15 and 62.00. If the instrument overcomes the resistance area of 83.40–80.95, the long-term trend will with the target at 89.77 will form.

The medium-term trend is upward, and last week, the trading instrument broke zone 2 (78.97–78.39). The next target is zone 3 (84.77–84.19), and the trend border shifts to the area of 76.66–76.08, after reaching which long positions within the trend are relevant with the first target at the high of the current week at 82.45.

Support and resistance

Resistance levels: 93.50, 89.77, 83.40.

Support levels: 74.50, 67.15.

Trading tips

Short positions may be opened from 83.40 with the target at 74.50 and stop loss around 86.40. Implementation period: 9–12 days.

Long positions may be opened above 86.40 with the target at 93.50 and stop loss around 83.40.