WTI crude oil price CFDs is trading at its highest levels since March 18 after reports surfaced that Russia is ready to reduce oil production. Earlier today, WTI crude oil price rallied to $28.30 from an intraday low of $23.26. The commodity has since pared some of its gains. As of this writing, it is trading at $26.45.
It would seem that President Donald Trump’s tweet yesterday was not completely unfounded. According to a few OPEC officials, Russia and Saudi Arabia plan to meet on Monday to discuss oil production cuts. It has also been said that US shale producers may join in on the meeting. Meanwhile, a few oil producers in Russia have reportedly expressed their solidarity with Saudi Arabia. While it has not yet been officially announced by the Russian government yet, oil executives supposedly have collectively agreed to reduce production.
Earlier this month, Saudi Arabia waged an oil price war after Russia ignored its calls for production cuts to support the price of oil. Since then, crude oil price has plunges to decades-lows.
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Crude Oil Price Outlook
By drawing the Fibonacci retracement tool from yesterday’s European session lows to today’s highs, it can be seen that crude oil price retraced its gains to the 23.6% Fib level. If there are enough buyers left in today’s trading, we could see the commodity retest its Asian session highs at $28.30.
On the other hand, it’s worth pointing out that crude oil price has room to trade lower and still maintain its uptrend. By connecting the lows of April 1 and April 2, it can be seen that there is trend line support at $24.65. This price also corresponds to the commodity’s previous highs as well as the area between the 50% and 61.8% Fib level. If buyers are unable to sustain their momentum, crude oil price could fall to this level.
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