Brent crude oil prices experienced a slight decrease today after a strong growth on Friday. The prices growth was based on the outcome of the OPEC meeting in Vienna, which resulted in a decision to further decrease oil production in the early 2020.
Currently, investors remain cautious. Growing concerns emerge regarding the possibility that these measures will not be enough to maintain a balanced state of the market. Furthermore, there remains a concerning possibility that Russia, Iraq and some other OPEC+ countries will not fully comply with the terms of this agreement.
The situation within the stock exchanges also exerts moderate pressure on the oil prices. Major indices are being traded in the red zone due to the possible introduction of the new US trade duties on Chinese imports starting from the 15th of December.
Regarding the chart, the price tested resistance at the level of 64.00. Further consolidation above that level was not possible, therefore, today we can expect the start of a corrective movement in the direction of the 62.50 level.
· Resistance levels: 64.00, 65.00, 68.00;
· Support levels: 62.50, 60.00, 58.50.
The main scenario - a correction towards the level of 62.50.
An alternative scenario - a consolidation above the level of 64.00 and a consequential growth towards the level of 65.00.
The fundamental outlook remains neutral. Within the daily framework, we consider sales with moderate risks starting from the level of 64.00.