Crude Oil Movement
For the 24 hours to 23:00 GMT, Crude Oil declined 0.15% against the USD and closed at USD48.01 per barrel, as doubts emerged that whether the OPEC will agree to a production cut large enough to make a significant impact in reducing the global supply glut. Additionally, Baker Hughes reported that US crude rig count rose by 3 to 474 in the week ended 23 November, recording the most number of rigs since January 2016.
Separately, the Energy Information Administration (EIA) reported a decline of 1.3 million barrels in US crude stockpiles to 489 million barrels during the last week.
Meanwhile, Iraq’s Prime Minister, Haider al-Abadi, expressed willingness to cut its crude oil output as part of OPEC’s plan to reduce global supply and boost crude prices.
In the Asian session, at GMT0400, the pair is trading at 48.02, with the oil trading marginally higher from yesterday’s close.
The pair is expected to find support at 47.47, and a fall through could take it to the next support level of 46.92. The pair is expected to find its first resistance at 48.5, and a rise through could take it to the next resistance level of 48.98.
Crude oil is showing convergence with its 20 Hr and 50 Hr moving averages.
