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Crude Oil Price Gains Up As OPEC + Key Players Indicate Curbs Could Continue into 2021

crude oil price

Key players in the OPEC + alliance have given hopes of extending the production curbs and opting for a gradual lifting of these curbs in 2021, sending crude oil prices higher this Thursday.

LiveSquawk is quoting the Iranian Oil Minister as saying that the OPEC + alliance has agreed in principle to continue production cuts for the first months of 2021. RTRS Sources also say that the coalition is presently discussing the modalities for the rollover of the current oil production cuts into January 2021, followed by a gradual increase in output by 500,000 barrels per day n February 2021. Furthermore, a LiveSquawk retweet also
indicates that the Russian Oil Minister is pushing for continued cooperation between the OPEC and non-OPEC members of the alliance.

This news feed has put smiles on the faces of bulls. The Brent crude oil price benchmark is now 0.83% higher on the day.

Technical Levels to Watch

Today’s move has violated the bullish flag on the daily chart of Brent crude, but this move has stalled at the 48.33 resistance as expected. The price move needs to break above this level to advance towards 50.64 in the near term.

On the flip side, a lack of follow-through buying could lead to bullish exhaustion at 48.33. This could provide the impetus for a slide towards 46.41 (31 August high), or even 44.16 if the decline is prolonged.

Crude Oil Price (Brent) Daily Chart