Crude Oil Prices Rise on OPEC Maneuvering
- Crude oil prices rose most in two months on OPEC maneuvering
- EIA inventory data may undermine momentum if API proves right
- Gold prices try to rebound but Fed-speak may cap follow-through
Crude oil prices posted the largest daily advance in nearly two months amid reports that OPEC members are scrambling to finalize the implementation details of an output cut deal struck in September. The cartel’s Secretary-General Mohammed Barkindo said members are fine-tuning the arrangement as he shuttled between meetings with producers to secure agreement before a formal meeting on November 30.
Barkindo will hold informal talks with Russia – a major non-OPEC supplier whose participation is seen as critical to any output deal’s success – this week in Doha. Saudi Oil Minister Khalid al-Falih will reportedly be attendance as well.
CRUDE OIL TECHNICAL ANALYSIS – Crude oil prices launched higher as expected having found support near the $43/bbl figure once again. Near-term resistance is now at 45.90, the 38.2% Fibonacci retracement, with a break above that on a daily closing basis targeting the 50% level at 47.05. Alternatively, a reversal below triple bottom support at 43.02 exposes the August 11 low at 41.08.
Written by Ilya Spivak, Currency Strategist for DailyFX.com
Contact and follow Ilya on Twitter: @IlyaSpivak