BRENT CRUDE OIL is trading up 1.43% at 100.16
Oil edged higher on Monday to extend last week’s gains as potential OPEC+ output cuts and conflict in Libya helped to offset a strong U.S. dollar and a dire outlook for U.S. growth.
Saudi Arabia, top producer in the Organization of the Petroleum Exporting Countries (OPEC) last week raised the possibility of production cuts, which sources said could coincide with a boost in supply from Iran should it clinch a nuclear deal with the West.
Brent crude was up 13 cents, or 0.1%, at $101.12 a barrel by 1150 GMT, having risen by 4.4% last week. U.S. West Texas Intermediate (WTI) crude was up 10 cents, or 0.1%, at $93.16 after gaining 2.5% last week.
OPEC+, comprising OPEC, Russia and allied producers, meets to set policy on Sept. 5.
The price of crude oil has surged this year, with Brent coming close to a record high of $147 in March as Russia’s invasion of Ukraine exacerbated supply concerns. Rising fears over high interest rates, inflation and recession risks have since weighed on the market.
Oil’s gain was limited by a strong U.S. dollar, which hit a 20-year high on Monday after the Federal Reserve chairman signalled that interest rates would be kept higher for longer to curb inflation.
Unrest in Libya’s capital at the weekend, resulting in 32 deaths, sparked concern that the country could slide into a full-blown conflict and disrupt in oil supply from the OPEC nation.
On technical fronts BRENT CRUDE OILRSI stood at 60.30 and currently it is trading above all MA. So, BUY position can be taken with following target and stoploss:
TRADE SIGNAL – : BRENT CRUDE OIL – BUY: 100.24, TARGET: 101.89, STOP LOSS: 98.26