Crude oil price on the Brent benchmark continues to trade with intraday whipsaws, as the alliance continues to dispute the future of production curbs at its now-extended meeting.
The OPEC + alliance finds itself at odds over the future of production quotas, with Saudi Arabia opting to add two million barrels per day to the market from August to December while extending the production agreements to the end of 2022. However, the United Arab Emirates seeks a higher production quota and wants an earlier end to the production cut agreement than Saudi Arabia is proposing.
The OPEC Secretary-General Mohammed Barkindo had indicated that a supply shortfall of 6 million barrels per day would exist for the rest of 2021, effectively leaving plenty of room for the OPEC + alliance to up its production significantly. The lifting of pandemic restrictions across the world is expected to ramp up demand for the product.
However, crude oil price trades in a choppy manner this Monday, as buyers and sellers await a conclusion to the meeting. Crude oil price on the Brent benchmark is flat at -0.01%.
Technical Outlook for Brent Crude
Crude oil price on the Brent benchmark stays above the 75.52 support and is slightly off last week’s 2021 highs as the price continues to trade within the channel. Bulls have as the immediate target the 77.93 price level, with 80.00 serving as an additional target.
If the alliance opts for an earlier end to production cuts, we could see price challenging support at 75.52. A breakdown of this price mark targets 73.34, with 71.44 and 70.00 serving as additional targets to the south.