Brent oil closed higher on Monday session after Saudi Arabia and Russia signalled production may be extended into next year.
Saudi Arabia’s energy minister urged global oil producing nations on Sunday to extend their cooperation beyond 2018, Reuters reported.
U.S oil drillers cut five rigs last week, bringing the total down to 747, another factor added fuel to the oil bulls.
As we pointed in our last week’s article, buyers are emerging at every minor dip. The price held the 20DMA twice and rebounded to 60.0 fib reaction (70.00$-67.95$ shallow dip) .
Resistance seems at 69.30$ and 69.70-70.00$. Support zone remains between 68$-67.90$.
Stiff resistance seems at 70.00$ handle above this could open to 71.50$ and 73.00$. Further bullish move possible if breaks above 73$.
Weekly range: 73.00$-65.00$
View: Neutral to bullish