WTI crude oil prices edged lower on Thursday as chief oil producers were close to a treaty to increase oil output by about one million barrels per day to prevent a likely supply shortage and steady prices.
Saudi Arabian Energy Minister Khalid al-Falih reportedly said OPEC and non-OPEC members were close to messing out a treaty to lift oil production, and recommended a production increase of about 1 million barrels was required to steady prices. He further added the point that the production-cut agreement primarily agreed in November 2016 had attained its goal of rebalancing the oil market.
OPEC has come under pressure for the spiky rise in oil prices – from U.S. President Donald Trump, asserting that the oil-cartel was "artificially" maintaining oil prices elevated.OPEC is likely to declare its decision today.
Crude oil prices had started the session lower after Russia Energy Minister Alexander Novak said Thursday after discussions with Saudi Energy Minister Khalid al-Falih that both nations decided to steadily increase production.
The crude oil daily chart has formed an” Ascending broadening wedge pattern.” In this pattern, prices have already broken out support line. It will retrace to previous support which has become resistance line at $67.50 and crude oil prices have strong support reacted at $64.35. Traders wait in anticipation for the OPEC meeting scheduled today (June 22nd).