Crude Oil analysis – 6 March 2020

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By: Ahura Chalki

Unsuccessful meeting or acute conditions?

On the first day of OPEC meeting, members agreed on decreasing the supply for 1.5M barrel a day, with extending the current agreement of 1.5M barrel, both by the end of 2020, instead of June, 30th 2020 to the non-OPEC producers, including Russia, however, it is the decision of OPEC members and for implementation need the confirmation of OPEC+ (OPEC and 10 none OPEC Oil producers), read that Russia. On the other hand, IEA plans to revise its 2020 demands forecast, due to coronavirus higher effect on the market.

WTI technical analysis:

Technical indicators for now clearly supporting the bears. $43.75 the March 2, low which was the past 15 Months low as well, is the current key support, breaching this level, can send the prices lower around $40, staying above this level will help the bulls to find their footsteps.

Pivot point: 46.35

Resistance levels: 47.00 / 48.25

Support levels: 45.00 / 44.42

Today, the expected trading range is between 44.42 support and 47.00 resistance.


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