Oil price rose on Tuesday morning in Asia, recovering from earlier losses as investors plunged past expectations of a Saudi recession. Saudi Arabia as well as Kuwait and the United Arab Emirates will not continue to cut oil production by 1.18 million barrels a day from July. This is in addition to the 9.7 million barrels per day reduction announced by OPEC+ in April.

Beside that, Saudi Arabia’s Aramco raised oil prices for July is a must in twenty years in June, with no expectation of hurting affecting the Asian consumer economy.

On the other hand, it’s also a good thing to have the number of voluntary reductions a month totaling almost 11 million barrels a day when we see a shortage of demand. The stockpiles may be back on track again this week, especially with evidence that new producers are back in action.

The Organization of the Petroleum Exporting Countries (OPEC), Russia, and another group of oil producers (the OPEC+) agreed on Saturday for a one-month extension through July, further reducing production of 9.7 million barrels a day.

However, Saudi Arabia said on Monday that the kingdom and the allies, Kuwait and the United Arab Emirates, would not agree to extend the OPEC+ cut of 1.18 million barrels a day in July anymore.

Meanwhile, Libya has announced a resumption of production in Al-Fil production and a boost in crude oil exports from Al-Fil production.

Pivot point: 38.50
Resistance1: 39.00 Support 1: 38.00
Resistance2: 39.50 Support 2: 37.50
Resistance3: 40.00 Support 3: 37.00
Today’s oil Signals:
Traders should buy gold: 37.50, Set Take Profit: 39.50, Stop loss: 36.50.

Analyst: Ms. Van Sreytouch, Independent Analyst