25-05-2018 11:02 AM
Crude oil prices edged lower on Thursday as reports came in that OPEC and its supporter were bearing in mind scaling back production cuts to counteract a possible shortage in global supplies weighed on sentiment.
Russian Energy Minister Novak reportedly said Russia would discuss with OPEC in June whether it is appropriate to gradually scale back production cuts as the market was rebalancing at a faster rate than many had expected in the wake of plummeting Venezuela output.
Another risk is the pending U.S. sanctions on Iran to global oil supplies that has added $5 to $7 barrels to the price of oil, Novak said.
Crude oil prices moved lower on Thursday and the crude oil daily chart has formed “Rising wedge” pattern. In this pattern, prices have currently broken out the support line which is 4860 ($71.20). Crude oil prices have turned to the negative territory which is likely towards downside target 4820-4775($71-70). We can expect short-term momentum with a negative bias. Today the right strategy to be adopted in this scenario would be sell on rise around 4876 ($71.50). The target expected is at 4850-4830($71.15-70.75) as the RSI shows overbought condition which will reduce the heat.