Oil prices rose almost 4.0% following news that OPEC is taking into account output cut of as much as 2 million barrels per day, although the impact on global supply could be smaller, according to Bloomberg. The group of major producers is set to meet in Vienna on Wednesday and earlier cartel was expected to reduce output by more than 1 million barrels per day, with the possibility of additional voluntary cuts by individual members. If the 2 million production cut is implemented, then this would reflect OPEC concerns that the global economy is slowing.
OIL.WTI price broke above local resistance at $85.50 and is currently approaching major resistance zone around 487.60, which is marked with upper limit of the 1:1 structure, downward trendline and 61.85 Fibonacci retracement of the upward wave launched in December 2021. Source: xStation5