For the 24 hours to 23:00 GMT, Crude Oil rose 2.11% against the USD and closed at USD48.91 per barrel, after Energy Ministers from Saudi Arabia and Russia endorsed for a nine-month extension to OPEC’s crude production cuts in order to rein in a global supply glut.
Meanwhile, the Energy Information Administration, in its monthly report, forecasted that US shale production would increase by 122,000 barrels a day in June to a total of 5.4 million barrels a day.
In the Asian session, at GMT0300, the pair is trading at 49.04, with the oil trading 0.27% higher from yesterday’s close.
The pair is expected to find support at 48.05, and a fall through could take it to the next support level of 47.05. The pair is expected to find its first resistance at 49.85, and a rise through could take it to the next resistance level of 50.65.
Crude oil is showing convergence with its 20 Hr moving average and trading above its 50 Hr moving average.