BRENT CRUDE OIL is trading up 3.54% at 96.16
OPEC+ is likely to keep oil output quotas unchanged for October at a meeting on Monday, six OPEC+ sources said, though some sources would not rule out a small production cut to bolster prices that have slid on fears of an economic slowdown.
The Organization of the Petroleum Exporting Countries (OPEC) and allies including Russia, known collectively as OPEC+, are expected to roll over existing policies, six OPEC+ sources said on Sunday and Monday.
However, three of the sources said the producer group could also discuss a small cut of 100,000 barrels per day (bpd).
Monday’s OPEC+ meeting is set against a complex backdrop including a potential supply boost from Iranian crude returning to the market if Tehran is able to revive its 2015 nuclear deal with global powers.
Russia, meanwhile, has said it will stop supplying oil to countries that support the idea of capping the price of Russian energy supplies over its military conflict in Ukraine.
Russia’s gas deliveries in Europe, meanwhile, have been cut further, which is likely to spark more price spikes.
Brent crude oil has dropped to about $95 a barrel from $120 in June on fears of an economic slowdown and recession in the West.
Iran is expected to add 1 million bpd to supply, or 1% of global demand, if sanctions are eased, though the prospects for a nuclear deal looked less clear on Friday.
Top OPEC producer Saudi Arabia last month flagged the possibility of output cuts to address what it sees as exaggerated oil price declines.
On technical fronts BRENT CRUDE OIL: RSI stood at 52.09 and currently it is trading below all MA. So, SELL position can be taken with following target and stoploss:
TRADE SIGNAL – : BRENT CRUDE OIL – SELL: 96.12, TARGET: 94.15, STOP LOSS: 97.21