The course of Thursday quotations on the energy commodity market was dictated by the most recent reports from Vienna’s OPEC meeting, where consensus was reached by world oil miners. Declarations on the extension of the agreement until the end of 2018 confirmed not only the representation from Saudi Arabia, but also from Russia, Iran or a fairly recalcitrant Iraq. With the newly determined extraction limit, Nigeria and Libya will have to be reckoned, which could have previously been able to count on the grace of other members due to the questionable economic condition.
In conclusion, OPEC and its allies agreed to extend the mining restrictions by 9 months to the end of next year, but with a revision in June. The decision was in line with expectations, but by the risk of shortening the agreement in mid-2018, it is not entirely positive for oil, or at least not enough to push prices higher. The investors can now exit the long positions to make a profit from the rally from the previous few weeks, so the corrective price movement in a range of $2-$3 seems fair.
Let’s now take a look at the Crude Oil technical picture at the H4 time frame. The market broke below the dashed short-term trend line, but bounced back up from the level of $56.78 and currently is testing the trend line from below. The market conditions are oversold and momentum is hovering around its fifty level.
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