Oil prices recover - Russia wants to extend production cuts

Oil is clearly rebounding today, despite the fact that during the Asian session the price dropped even 6%. This is related to the comments from Russia which said, that due to the further demand problems, the cut in production at the level of 7.7 million barrels per day may be extended until the middle of next year. It is also a response to the growing production from Libya. Nevertheless, such actions may not be liked by other countries, such as Iraq, so it is possible that in the future we will observe violations of production limits.

Crude oil is returning to an important supply and demand zone. Another strong resistance is located at the 200 SMA and the 23.6 retracement. Source: xStation5

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