Crude Oil: Oil plunges after Saudi Arabia cuts oil prices, hikes output

Crude Oil

Crude Oil Movement

For the 24 hours to 23:00 GMT, Crude Oil tumbled 10.33% against the USD and closed at USD41.33 per barrel on Friday, as a three-year deal between the Organisation of the Petroleum Exporting Countries (OPEC) and Russia collapsed, after the latter disagreed to support deeper oil cuts. Additionally, Baker Hughes reported that US oil rig count rose by 4 to 682 last week.

In the Asian session, at GMT0400, the pair is trading at 28.54, with oil plunging 30.95% against the USD from Friday’s close, after Saudi Arabia slashed its crude oil selling price by the most in more than 30 years and raised its crude oil production significantly above 10 million barrels per day.

The pair is expected to find support at 22.41, and a fall through could take it to the next support level of 16.29. The pair is expected to find its first resistance at 40.15, and a rise through could take it to the next resistance level of 51.77.

Crude oil is trading below its 20 Hr and 50 Hr moving averages.

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