Oil prices surged overnight after OPEC+ urged members to conform with production cuts in an online meeting yesterday. “The JMMC reiterated the critical importance of adhering to full conformity and compensating overproduced volumes as soon as possible,” OPEC officials said.
WTI extends the rebound from 35.98 to as high as 40.73 so far. Further rise is expected towards 43.50 resistance. At this point, we’re not expecting a firm break there. 43.75 is seen as a medium term top with subsequent price actions seen as developing into a sideway consolidation pattern. Break of 39.37 will start a third leg, a down leg, in the pattern.
