Oil is posting big gains today with both Brent and WTI trading 4% higher. Rally was triggered by media reports suggesting that OPEC+ may decide for a big output cut at the meeting this week (October 5, 2022). Media chatter is now center around 1 million barrel cut in daily production with some even suggesting that 1.5 million barrel cut may be on the cards.
OIL.WTI broke above the downward trendline and climbed back above the $81.00-81.60 resistance zone. After a successful retest of the zone, a strong upward impulse was launched this morning. $83 per barrel mark was breached for the first time in more than a week. A key level to watch in near-term can be found at $84.65 per barrel - the upper limit of a market geometry, a break above would - at least in theory - hint at a trend reversal.
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