Although strong interventions to support the Crude oil prices are on going with recent update from Saudi Arabia to lower the output by additional 1 million bpd in june , but still price failed to break the 27.50 area resistance as the demand from global economies weakens /Corona virus after affects . Technically , price got a strong rejection from the 55 day EMA hence i am expecting a test to the Fib supports around 18-20 in coming days .
Eventual lowering of output from Oil producing countries will support the crude oil slowly but surely ,so we are looking for the price to gain sharply from 18-20 level and to commence the rally towards 40 level . Saudi aims through this additional cut to encourage OPEC+ participants and other producers to comply with the production cuts they have committed to.