Oil is being traded in the green today. Support to the quotes is provided by the situation on stock markets and reports, that OPEC states will discuss an option of extension production cuts agreement during their next meeting.
Let’s remind, that OPEC+ meeting is due on 5-6 of December in Vienna. Investors’ primary concern is the question over extension of output curbs agreement. Some investors also hope that the cartel might even deepen production quotas. Russia opposes the extension of an agreement so far. Earlier Russia’s energy minister offered to postpone discussion of production cuts to spring 2020.
A restraining factor for oil market remains uncertainty linked to the U.S.-China trade talks. A day before Donald Trump claimed, that his signed into law Hong Kong human rights legislation may interfere with negotiations, but China is still willing to sign a trade deal.
On the chart horizontal channel 60.00-62.90 is viable. Within this sideways channel we can expect growth of the quotes in direction of the 62.90 level.
Main scenario: Growth towards 62.90.
Alternative scenario: Break of support at 60.70 and decline towards 60.00.
Fundamental background is neutral. Bullish signals prevail locally on the chart. For intraday trading we consider long-trades from the 60.70 level.