Crude oil prices fell on Wednesday after a Reuters report indicated that Saudi Arabia and the UAE had reached a compromise on boosting global supplies to meet rising demand.
Even after the collapse of the OPEC + alliance’s talks last week, industry experts had indicated that contending parties would reach a deal. This deal now allows the oil producers’ coalition to apply output curbs until the end of 2022.
Despite the slump in the EIA crude oil inventories from -6.9million to -7.9million, crude oil prices remained on offer during the New York session. Brent crude is down 1.57% as of writing.
Technical Outlook for Brent Crude
The decline in crude oil price on the day has put the 75.52 support level at risk. If this level is taken out, 73.34 becomes the next target. 71.44 and 70.00 are the next set of price targets for sellers if the 73.34 price mark fails to hold.
On the other hand, a bounce on 75.52 allows the 77.93 resistance to come into the picture. Above this level, 80.00 serves as the psychological resistance of note.