Oil Prices Hit a 17-Month High on OPEC and Non-OPEC Meeting Outcome
December 12, 2016 11:17 am
OPEC held a meeting last Sat 10th Dec in Vienna, although only 5 out of 16 countries attended, including Russia, Kazakhstan, Oman, and Mexico. Yet an outcome of output cut was reached for the first time for OPEC and Non-OPEC countries, since 2001 to cut oil output. Despite the Baker Hughes US oil rig count released last Friday rose to 498, surpassed the previous figure of 477, hit the highest level since this end of January. Yet after the news of OPEC meeting outcome was released, oil prices surged during the Asian session. Brent Crude reached the highest level of 57.59 since 16th July 2015, breaking the mid-term major resistance level at 54.00. WTI reached the highest level of 55.27 since 6th July 2015, breaking the mid-term major resistance level at 52.00. The level has turned into the near term major support. On the 4 hourly chart, the 10 SMA crossed over 20 SMA. Suggesting the bullish momentum is strengthening. The RSI indicator is around 75, be aware of a retracement prior to the next rally. The resistance level is at 55.00, followed by 55.30. The support line is at 54.40, followed by 54.00 and 53.60. Source: FX Pro Market Snapshot
OPEC held a meeting last Sat 10th Dec in Vienna, although only 5 out of 16 countries attended, including Russia, Kazakhstan, Oman, and Mexico. Yet an outcome of output cut was reached for the first time for OPEC and Non-OPEC countries, since 2001 to cut oil output. Despite the Baker Hughes US oil rig count released last Friday rose to 498, surpassed the previous figure of 477, hit the highest level since this end of January. Yet after the news of OPEC meeting outcome was released, oil prices surged during the Asian session. Brent Crude reached the highest level of 57.59 since 16th July 2015, breaking the mid-term major resistance level at 54.00. WTI reached the highest level of 55.27 since 6th July 2015, breaking the mid-term major resistance level at 52.00. The level has turned into the near term major support. On the 4 hourly chart, the 10 SMA crossed over 20 SMA. Suggesting the bullish momentum is strengthening. The RSI indicator is around 75, be aware of a retracement prior to the next rally. The resistance level is at 55.00, followed by 55.30. The support line is at 54.40, followed by 54.00 and 53.60.
Source: FX Pro Market Snapshot
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