The crude oil price declined sharply in the overnight session as traders focused on the upcoming OPEC+ talks and US inventories data. Brent, the International benchmark, declined by more than 1.4% to $62.77 while the West Texas Intermediate (WTI).
What happened: The price of crude oil has been on a strong downward trend in the past few sessions as traders wait for the new OPEC+ meeting. The leaders of Saudi Arabia and their Russian allies will deliberate on whether to continue the ongoing supply cuts. Previously, Saudi Arabia has said that it will start to increase production in April.
Later today, the crude oil price will also react to the latest US inventories numbers. Economists believe that the data will show that inventories dropped by more than 1.8 million barrels last week. That’s after they rose by 1.28 million barrels in the previous week. Also, the price is reacting to the ongoing news about US stimulus.
Brent crude oil forecast
The Brent crude oil price declined to a low of $62.52, which is the lowest level since February 22. The price has moved below the ascending trendline shown in black. It has also moved below the 25-period and 15-period exponential moving averages (EMA). Therefore, in the near term, the price may resume the upward trend and possibly retest the year-to-date high of $67.62. However, this trend will be invalidated if the price drops to $60 and below.
Oil prices chart