Crude oil prices on the Brent benchmark briefly surged to 3-year highs after the OPEC + alliance meeting to lift production output collapsed. Saudi Arabia and the United Arab Emirates disagreed on the timing and scope of lifting production curbs. With both sides unable to agree, talks were postponed, thus halting plans to find a way to fill the expected 6 million barrels per day supply shortfall as predicted last week by OPEC’s Secretary-General Barkindo.
With existing quotas remaining in place, crude oil prices shot up to as high as $77.82 on Tuesday. However, intraday selling has forced prices down by 2.02% as of writing, allowing Brent crude to test the support provided by the $75.52 price mark.
A spokesman for the Kremlin Dmitry Peskov told reporters that work was ongoing to reach a decision he said was “necessary”. The US government has also asked the alliance to reach a compromise to raise output.
Technical Outlook for Brent Crude
With the intraday selloff, crude oil prices gave up gains amid a price retreat from the 77.82 price mark (close to the 3-year resistance at 77.93). This retreat has seen Brent crude oil drop towards the 75.52 support. Price has violated this support, and if it eventually gives way, the 73.34 support becomes the next target at its intersection with the ascending channel’s lower border. Below this level, 71.44 and 70.01 form additional targets to the south.
On the flip side, a bounce on the 75.52 support allows the bulls to make another attempt at the 77.93 resistance. If this level is uncapped, then 80.00 becomes the next logical target.