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OPEC Cuts Supporting Oil
Oil prices are starting the week on a solid footing with crude futures in the green across early European trading on Monday. News of reduced oil exports from OPEC+ this month have helped underpin sentiment. Exports from Russia and Saudi Arabia were down firmly on the back of the two suppliers undertaking further production cuts amounting to around -1.5% of daily global supply. The data has helped offset concerns over a weaker global demand outlook which have been weighing on crude recently.
Fresh China Easing Measures
Oil prices have also been supported today by news of fresh easing measures in China. The PBoC cut one year loan prime rates to 3.45% from 3.55% prior. This marks the latest in a series of moves undertaken by Chinese authorities to help support the economy. Looking ahead this week, traders will be waiting on the latest round of PMI readings out of the US, UK and Eurozone. These readings will give an insight into the health of the three economies and hold the potential to cause market volatility for oil prices.
Technical Views
Crude
Crude prices are turning higher again now following the correct lower from highs around the 85 level. 82.59 remains the key near-term hurdle. If bulls can get back above there, focus will shift to the 93.47 level next. To the downside 72.61 is the key support to note.
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With 10 years of experience as a private trader and professional market analyst under his belt, James has carved out an impressive industry reputation. Able to both dissect and explain the key fundamental developments in the market, he communicates their importance and relevance in a succinct and straight forward manner.