It has for long we been accustomed to the multitude of contrasting information about oil. It is not different today. On one hand, yesterday’s weekly data on crude oil inventories pushed prices down temporarily. As it turned out, the US has more than 5 times more inventory than was forecast (5.3 million barrels vs. 1 million barrels). While on the other hand, today sites spread around the information that Qatar is in talks with Iran and Iraq concerning freezing of oil production. This message, in turn, led to a sharp rise in oil prices, and at this point, Brent crude is 2% more expensive and WTI crude 1.9%.
At the end of November, is scheduled a meeting of members of the OPEC countries, which is to end by a decrease in oil production. There are signs now that the movement of the price of WTI oil will take place up to that point levels between 43.00 – 49.00. After that meeting the price of oil will get strong incentive to break one of the indicated levels. In short term, breaking the resistance level at 46.50 will take price to 47.70, in turn, a reflection of the level of 46.50 will take price to 44.50. The closest resistance for WTI: 46.50, 47.70, 49.00, 51.50. Nearby Support: 44.50, 43.00, 40.00.