With Brent Crude Oil entering a bear market last week it seems that Saudi Arabia is open to talks of cutting Oil production to try and curb the selloff in the oil market. The kingdom being the largest producer of Oil within the OPEC countries made the announcements on Sunday which saw the Oil price rise over 1% Monday in early morning trade.
Some of the statements from the Saudi Oil Minister were that the kingdom will be supplying around 500 000 fewer barrels a day next month due to lower demand, as the reason.
Let's take a look at the technical trading chart...
Taking a closer look at the chart of Brent Crude Oil we can see that the price has moved significantly lower from the 4-year highs we saw in early October. The price is currently above the 61.8 Fib level and looks to push higher from here. The Relative Strength Index (RSI) also seems to be moving higher from oversold levels.
Some of the fundamental factors to look out for are that Russia would also need to start cutting production along with Saudi Arabia to support the move higher. Russia is rumoured to have said that it is not sure that the Oil market would be oversupplied in 2019, signalling that they might not support cutting production
Source – MetaTrader5
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