Crude oil price rose 1.39%, with most of the gains coming in the New York session as the latest headlines appear to be bullish for the market. Reuters is reporting that the OPEC + alliance looks set to implement further easing of output cuts by about 400,000 barrels per day from August to December 2021. This would raise the amount added to the market to 2 million barrels per day.
However, there are some rumours that the alliance is planning to debate an extension of output curbs until December 2022. This has spurred some buying interest in the asset. Russia and Saudi Arabia, the top producers of the two blocs that make up the OPEC + alliance, are said to have agreed on a strategy to implement the delivery of the output curb reductions.
Technical Outlook: Brent Crude
The recovery in price allowed crude oil price to hit a new 2021 high at 76.71, but there has been a pullback, which still keeps Brent crude’s intraday violation of 75.52 intact. A second daily close above this level allows Brent crude to push towards the 77.93 resistance, with 80.01 serving as additional resistance to the upside.
On the other hand, bears would seek a decline below 73.34 (along with the channel’s lower boundary), making 71.44 and 70.01 the likely targets in that circumstance.