Crude Oil Price in Limbo As OPEC + Shifts Day 2 of Meeting
Crude oil price is up 0.32% on the day as the markets await the OPEC + alliance’s decision on whether to lift its 2020 production curbs or whether to leave them in place beyond the first quarter of 2020.
Today was supposed to be the final day of the meeting with the decision made known to the markets. Still, the alliance delayed the 2nd day of the meeting as cracks emerged in the coalition over the fate of the 2 million barrels/day that would hit the markets once the latest curbs expire.
The meeting’s 2nd day is now scheduled for Thursday, leaving crude oil prices in limbo until then.
Technical Levels to Watch
Today’s bullish candle continues the price oscillation within the consolidation area of the evolving bullish flag on the daily chart of Brent crude.
A bullish conclusion to the pattern could follow the OPEC + alliance’s decision to maintain the production curbs beyond the 1st quarter of 2021. This breakout must also push above 48.33, targeting 50.64 in the first instance.
On the other hand, an OPEC + decision to remove production curbs from January 2021 could be bearish for crude oil price on the Brent crude benchmark. This could lead to a breakdown of the flag, thus invalidating the bullish expectation. This breakdown would challenge the 46.41 support level. A breach of this level to the downside extends the decline towards 44.15, with 42.50 also lining up as potential future support.