Oil Price have surged sharply to the new high $67.90 last week following the OPEC+’s surprise moves to maintain cuts in supply shows the producers’ group is in charge of the market. OPEC+ has since implemented unprecedented production cuts, returning prices to pre-pandemic levels.

The maintain on this decision of output restriction from OPEC+ is to boost the price and intends to cut to significant of large stored oil by under supplying the market.

Oil price has been traded lower to $64.50 a barrel on Monday this week as the dollar strengthened and investors shrugged off an attack on the world’s largest crude terminal in Saudi Arabia.

According to Bloomberg reported “Dollar Spot Index rose as much as 0.5% on Monday. it causes the reducing appeal of commodities priced in the currency”. Market is eyes on an assault on a storage tank farm at the Ras Tanura terminal last Sunday while the Saudi Arabi reporting that the attack was obstructed and oil output appeared to be unaffected.

Oil price surged sharply over 30% this year as OPEC+ meeting was consensus on kept production curved since early 2021. The group’s last meeting via the videoconference agreed to keep production level of March for the month of April, excluding Russia and Kazakhstan who will be allowed to rise output by 130 and 20 thousand barrels per day.

Oil demand is seen recovering with economies emerging from the coronavirus crisis as Covid-19 vaccine program in the U.S is more positive and effective as Biden administration promising enough for every adult by end-May.

The declining in oil price on Monday is likely from production and export capabilities following the attack in Saudi Arabia “came out relatively unscathed, so the market has taken that as a cue for some profit-taking,” said Tony Headrick, energy commodity broker at CHS Hedging.

After the last month of deep freeze that hit Texas and others portal of U.S which Seven of 18 refineries impacted by the cold blast that represent over 2 million barrels per day of crude processing were operating as normal this Monday.

Trade recommendation:

Buy in a range of: $63- $65.

Stop-loss: $62.

Profit Taking: $66.50- $70.

Analyzed by：Mr. Kosol Nhim，Independent Analyst