Yesterday the price of Brent crude oil significantly corrected due to a Dollar decline and prior to the OPEC meeting, which is due today.
According to the majority of experts, OPEC is not going to reduce quotes despite some speculation that Saudi Arabia can reduce its output. Contrary to that, there is a possibility that quotes will be increased due to Indonesia joining the cartel and Iran’s plans to increase output after sanctions are lifted. Therefore, total output could increase to 31 million barrels instead of today’s 30 million barrels a day. In this case, the price of oil might decline below year lows near the level of 42.46.
Support and resistance
The nearest is at 42.46 (yesterday low).
The nearest is at 44 .66 (yesterday high).
Short positions can be opened from current prices with the target at 42.46 and stop-loss at 44 .66.
If OPEC decides to reduce quotes at the meeting today, open long positons with the target at 46. 44 and stop-loss at 44 .00.