Please attribute the following commentary to Jeffrey Halley, senior market analyst at OANDA
Crude consolidated its previous day’s gains overnight, shrugging off Iraq’s complaints that OPEC is under-estimating its actual production and thus what its contribution will be to the production cut. Whilst this highlights just how shaky the initial deal appears to be within OPEC itself, the fact that oil didn’t head South aggressively should be positive for oil bulls.
Brent and WTI have consolidated gains of over 1.5% opening at 49.10 and 47.25 respectively. Resistance still lies at the 50.00 (Brent) and 48.50 (WTI) areas and neither level has been seriously challenged as yet. 24 hours is a very long day in the oil markets these days and the street will be hoping these two levels will be broken and consolidated above sooner, rather than later, least lethargy sets in and newly minted long positions start eyeing the exit into the weekend.
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