Crude Oil Prices Could Gain as OPEC talks Extending Output Cut Deal

April 3, 2017 1:50PM CDT

Crude oil prices rose for a fourth consecutive session amid reports citing Kuwait’s energy minister as saying his country and other key producers favor extending the production cut deal, stemming from OPEC agreements with key non-cartel producers late last year. The spotlight now turns to the Iraq Energy Forum, where many of the principles to the accord have gathered. 

Already, OPEC Secretary-General Mohammad Barkindo has opined from the sidelines of the gathering in Baghdad, saying coordinated efforts to cut output are working to work down bloated inventories. That seems to have passed unnoticed by traders, but there remains the very real possibility that more forward-looking rhetoric from the summit sidelines will prove market-marking.

 

CRUDE OIL TECHNICAL ANALYSIS – Crude oil prices are on their longest winning streak in two months. A daily close above the 38.2% Fibonacci expansion at 52.04 targets the 50% level at 53.57.  Also, a turn back below the 23.6% Fibonacci at 50.14 paves the way for a retest to the 14.6% expansion at 48.98.

 

May Crude Light Daily Chart

 


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