Crude oil trend reversal towards $67.50 & api weekly crude oil stocks
WTI crude oil prices edged higher on Monday as traders showed optimism over a report signifying the Organization of the Petroleum Exporting Countries was in view of a production increase well below levels than initially expected.
Members of the OPEC are talking about a conformity that would raise oil output by 300,000 to 600,000 barrels a day (bpd) over the next few months.
The talks come as OPEC takes effort to soothe contrasting demands from its members and Russia. Russia prefers a large output hike, while other OPEC members counting Iraq and Iran believe output should be sustained as oil prices still need to be held up.
Crude oil prices rebounded from lower level and has now formed “Broadening bottom pattern". In this pattern, prices have marked fresh on the support line,. As per the pattern, prices are likely to move towards upper resistance line at $67.50. After touching the target line, it would then turn bearish towards downside target at $61.95-$60.25. Current Resistance line is at $67.50 which is likely to retest again if possible. Traders wait in anticipation for the OPEC meeting scheduled on June 22nd.