Oil is under pressure in Asia after comments from Kuwait over the weekend.
Oil continued its sideways consolidation on Friday, as both Brent and WTI rode the coattails of a general commodities rally to finish at 63.57 and 57.25 respectively. The picture has not been so bright this morning, as Kuwait’s oil minister over the weekend said that OPEC and Non-OPEC would study exit strategies before the joint meeting in June.
Although wholly rational and logical in itself (you would sensibly plan these things far in advance of the end of 2018 expiry), it was enough to send traders scurrying from long positions in early Asia. Brent has fallen 0.46% or 30 cents to 63.50 with WTI falling 0.40% or 25 cents to 57.00.
The UAE energy minister has since bought some clarity and voice of reason to the previous comments with,
“UAE ENERGY MINISTER SAYS OPEC, NON-OPEC PLAN TO ANNOUNCE AN EXIT STRATEGY FROM SUPPLY CUTS IN JUNE, DOES NOT MEAN WE WILL EXIT IN JUNE” Source: Reuters
Brent has resistance at the multiple daily tops at 64.00 followed by 64.45 and 64.85. Support is at 62.20 and then the critical 61.25 numerous daily lows.
WTI spot has resistance at 58.00 and then 58.20, its trendline resistance ahead of the substantive 58.85 level, a daily triple top. Support is at 56.40 followed by 55.675.