Last Friday’s OPEC decision to cut oil supply by 1.2 million barrels per day provided little boost to U.S Oil prices.
Traders felt disappointed by the total cuts, aimed at stabilizing the price of oil since it’s recent downside leg.
With Donald Trump also piling pressure on Saudi Arabia not to cut, the consensus between investors is cloudy. OPEC refused to reveal which country will and also how much which also casts further shadows.
Oil has found temporary rest-bite at the $50.00 a barrel region after 4 attempts to break below, Price could extend gains if economic data reveals inventory cuts from the U.S later today and a further boost if the U.S rig count also takes another dip from last week.
Price on the 4HR and 8HR timeframe has taken out the prior L.H printed at the 52.50 level in November signaling a potential trend reversal. Notice carefully that price has also discreetly printed H.L’s with the lows of the wicks supported by the trendline. Currently attempting a push above daily resistance 52.25 and if price sustains we could see another push towards the 54.50 highlighted region.