Top oil producers – Russia, Qatar, Saudi Arabia and Venezuela – have agreed to freeze oil output at 11 January level. This decision might help to tackle an oversupply of the global oil market. Thus, the price of oil has its chance to strengthen to $40 per barrel. However, at the same time, there is a lack of clear understanding of how long the agreement will last and whether the countries will strictly follow all its conditions.
Support and resistance
The price is trading slightly below the MA200.
The nearest is at 32.00.
The nearest is at 32.50.
Short positions can be opened from the level of 32.00 with the target at 30.47 and stop-loss at 32.20.