Further attempts to revive the oil market - Saudi Arabia raises export prices

Today's session starts quite positively for oil. We have a big bullish price gap and the WTI price is approaching $68.00 level. From the bulls perspective, prices need to stay above the upward trendline and the 78.6% Fibonacci retracement of the last upward wave.

Of course, the key factor that now affects the prospects of entire economies, including the demand for oil, is the coronavirus, and specifically its new variant - Omicron. At the moment, the first reports indicate that it is a very contagious strain, but the potential side effects of it are not severe.

 It is also worth mentioning Saudi Arabia, which decided to raise export prices for Asia and the United States, despite the risks associated with the coronavirus. This is probably because the market was hit by a deficit prior to the start of the current wave. Let us also recall that OPEC + has recently decided to keep the policy unchanged and intends to increase production by 400,000 barrels per day in January, but at the same time is ready to react in the event of significant changes in market factors.

WTI crude oil (OIL.WTI) is trading above major support. Next target for the bulls is now to break above the 61.8%  Fibonacci retracement and the lower limit of the upward channel. On the other hand, the key level for sellers is located around $ 64-65. Should break lower occur, downward impulse may accelerate towards $58. As you can see, the dollar is not providing any support for oil at the moment, although at the same time the divergence has narrowed sharply in recent days. Source: xStation5