Brent crude slips below $66 a Barrel As U.S. Output Offsets OPEC Curbs

U.S. oil production has topped 10 million barrels per day, approaching a record set in 1970, but many investors in the companies driving the shale oil revolution are still waiting for their payday.

Oil slipped to $66 a barrel on Friday, under pressure from concerns that rising U.S. oil output and exports will offset OPEC-led attempts to erode stockpiles with output curbs.

“The U.S. is pumping out a record amount of oil,” said Naeem Aslam, chief market analyst at Think Markets UK Ltd.

“The bull rally which we have seen for the black gold could fade away as the U.S. oil production undermines the OPEC production cut commitments,” he said.

Brent crude, the global benchmark, was down 34 cents at $66.05 at 0934 GMT. Prices had rallied in early 2018 and reached $71.28 on Jan. 25, the highest since December 2014. U.S. crude fell 27 cents to $62.50.

On the technical charts, Brent crude is trading in the negative zone, above all the moving averages (9 day, 20 day, 50 day, 100 day, and 200 day). The RSI is at 51.47 and the MACD is above the signal line.

Trade suggestion:

Sell stop at 62.35, Take profit at 61.99, Stop loss at 62.50

Leave a Reply

Your email address will not be published. Required fields are marked *