Four months after the cut in oil production, the Organization of the Petroleum Exporting Countries (OPEC), including Russia, and non-OPEC exporters continued to pump slowly after leading coalition allies. Saudi Arabia wants to boost oil production, which began in August, because there are signals that demand is returning to normal after the economy has reopened after has been lockdown for a long time in order to implement a plan of social distancing caused by coronavirus.

Crude prices have successfully doubled in recent months, with OPEC+ allies, led by Saudi Arabia and Russia, ready to crack down on these exports. Fuel demand is recovering with the resumption of the economy.

According to the report, all members will meet on Wednesday to discuss current and future production plans and plans to restore production to 2 million barrels per day in production. Following a cut in production in April, Saudi Arabia contributed to a 9.7 million barrel cut in production amid Coronavirus outbreak that dampened oil demand.

The Monitoring Committee (JMMC) will consider whether the 23 allies should maintain 9.6 million barrels per day of output in the market for various months or restore production as planned, reducing the output to 7 million barrels per day.

As demand picks up, members are turning to the latter option, and delivery schedules for August have already been set, according to several national delegates.

According to some of the above reports and principles, oil prices may rise.

Pivot point: 39.50

Resistance1: 41.00     Support 1: 39.00

Resistance2: 40.50      Support 2: 38.50

Resistance3: 40.00      Support 3: 38.00

Today’s oil Signals:

Traders should buy oil: 38.50, Set Take Profit: 39.70, Stop loss: 37.80.

Analyzed by: Ms. Van Sreytouch (Michelle), Independent Analyst