The price of crude oil is settling up $0.93 or 1.39% at $67.93. That comes despite a large and expected production boost announced by OPEC+ over the weekend. The high price today reached $68.28. That was the highest level since June 23.
Members of OPEC+ expected to increase by 411,000 barrels per day as it looks to speed up the 2.2 million barrel per day voluntary production cuts. Instead , the group increased production by 548,000 bpd.
In a statement, the group said:
“In view of a steady global economic outlook and current healthy market fundamentals, as reflected in the low oil inventories, and in accordance with the decision agreed upon on 5 December 2024 to start a gradual and flexible return of the 2.2 million barrels per day voluntary adjustments”
Technically, the price remains below both its 100-hour moving average at $66.48, it’s 50% midpoint of the move up from the April low to the June high at $66.33 and also above the 200 hour moving average at $65.85. If the bias is to turn more to the downside, moving back below those levels is required. Absent that, and the buyers are more in control.
This article was written by Greg Michalowski at www.forexlive.com.