Positive OPEC report on future expectations
During yesterday's session, as we discussed in our analysis, OPEC published its monthly report in which we could see its expectations for the future. In the report, OPEC was very optimistic about the recovery of consumption, with the organisation predicting that it will have to increase its production during the coming months in order to meet demand next year.
As we can see in its own report, in 2022 there is enough margin for each member of the group to increase its production by 1.4 million barrels per day. This report was welcomed by investors, boosting both the price of a barrel of Brent and WTI to over $72 and $70 respectively.
From a technical perspective, so far this month Brent is experiencing a new upward momentum that is leading it to rise about 5% since the beginning of the month. After rising 3.25% last week, it finally managed to surpass the level of $70 per barrel closing the week at $71.89 dollars, after OPEC and its allies kept intact the current programme of cuts in production on Tuesday.
In today's session the price remains for the moment above $72 per barrel in an area close to its current resistance level in the green band. We will have to be attentive to the evolution of the price and see if it is able to overcome this level after this positive report or, if on the contrary, it makes a retracement to its support level at the psychological level of $70 in search of a new impulse. The breakout of its current resistance level could trigger a bullish rally in search of its long-term downtrend line and $80 per barrel.
Source: Admiral Markets MetaTrader 5. Weekly Brent chart. Data range: November 16, 2014 to June 11, 2021. Prepared on June 11, 2021 at 12:00 pm CEST. Please note that past returns do not guarantee future returns.
Evolution in the last 5 years:
- 2020: -21,52%
- 2019: 22,68%
- 2018: -19,55%
- 2017: 17,69%
- 2016: 52,41%
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