Crude oil prices have opened the week slightly higher on hopes of stable production output from the OPEC + alliance.
The OPEC + alliance is scheduled to meet on April 1 to discuss the possibility of extending the current production curbs. The markets expect this to happen, barring any unforeseen circumstances.
However, market optimism is muted as news has emerged that the EverGreen vessel which blocked the Suez canal for a week has finally been freed from the banks of the canal, thus restoring hopes that normal shipping through this route will resume this week.
The Suez Canal Authority (SCA) confirmed the partial refloating of the ship, which was done on Sunday after higher tides aided the rescue efforts.
It could take weeks to restore the regular shipping traffic along this route, which is where supertankers routinely transport crude oil supplies to and from Europe, the Middle East and Asia.
Technical Outlook for Crude Oil Price
The Brent crude benchmark is having to endure a session of choppy trading this Monday but has been able to stay a tad higher.
The 64.26 support continues to hold and could be the springboard needed for bulls to execute a run towards the 65.95 resistance barrier. This barrier stands between 66.81 and 67.74, with a push beyond 70.01 and 71.44 required to restore the uptrend recovery move.
On the other hand, a breakdown of the 64.26 support allows bears to make a charge for 61.21, with 60.07 and 57.47 serving as the additional support targets to the south.
Brent Crude; Daily Chart