Crude Outlook: sideways moves possible as volatility persistsOil prices ticked higher after OPEC+ approved a modest production increase, reversing earlier cuts and signaling a shift toward market share over price support. While the hike was smaller than in previous months, questions remain over whether members can deliver the extra supply, with some facing limits on output. Geopolitics and China’s stockpiling provide temporary support, but traders are watching inventory data and compliance closely as oversupply risks point to renewed volatility ahead.
On the technical side, the price of crude oil has found sufficient support around the $62 area, which has been a price reaction area since mid-August. The moving averages crossed last week, validating the bearish shift in the market, while the Bollinger bands are still quite expanded, showing that there is volatility to support any significant moves in the short term. The Stochastic oscillator seems to be rebounding from the extreme oversold levels, hinting that the recent sideways movement can project to the upcoming sessions if no major catalyst takes place.
Disclaimer: The opinions in this article are personal to the writer and do not reflect those of Exness
