OPEC meeting is close
Oil prices are on the rise on Monday as a result of media reports that OPEC is trying not only to extend the current production limitation but also to deepen its scale.
On Thursday there will be the meeting of OPEC countries and non-OPEC oil producers including Russia. At the meeting, the basic issue to discuss will be the extension of oil production restrictions which are in force since beginning of the year. It is estimated that current agreement will be extended by 6 or 9 months. In the first quarter of 2017, oil stocks in the world continued to remain high, as many analysts believe OPEC should push for a deeper cut in oil production.
As a result, since the beginning of Monday’s quotations, oil prices are rising. Crude WTI is currently up 1.05%, while Brent crude is up 0.32%. However, looking on charts from May 5th 2017, the price of oil has risen by more than 15% in just over 2 weeks.
Ropa Crude WTI
On Friday, significant resistance at 50.00 was broken. Bulls target is currently at 53.70 resistance, which represents almost a 3 month maximum. The closest support that will now help the demand is 50.00.
Very similar situation on the Brent oil chart. On Friday a significant resistance of 53.00 was broken. At this point the target of bulls is resistance 57.50, which has not been beaten for months.