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Oil Recovery Rally Gains Momentum

Published 13/03/2019, 01:18 pm
Updated 06/07/2021, 05:05 pm
  • Oil prices have recovered recently, as Saudi Arabia has announced further output cuts in April
  • Furthermore, Venezuela oil exports have decreased amid power outages
  • OPEC seems to be committed to reduce output further, which could support prices in the short-term
  • The technical outlook for US oil has improved following the bounce off $54.20 support
  • US oil is currently approaching $57.60 resistance and a clear breakout could potentially pave the way for an extension of the recovery rally US oil H4
  • The next big levels to watch above $57.60 are $59.50/60 followed by the 200 DMA (currently around $61.50)

US oil daily

  • Similar price action can be seen in UK oil
  • The key level to watch is $67.70, which acted as key support/resistance several times before
  • Beyond that, the 200 DMA around $70.20 is an important line to watch

UK oil

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