Crude oil prices got a reprieve as the commodity logged gains on Tuesday. WTI crude oil prices rose over 4.0% on the day on Tuesday. In an interview, an oil minister from Equatorial Guinea said that OPEC members prefer prices to be around $60 – $70. The comments come ahead of the semi-annual OPEC meeting which could be scheduled in July. The prevailing narrative is that OPEC will continue with its production cuts.
Can WTI Crude Oil Maintain the Gains?
After oil prices surged to the upside, the breached trend line suggests there is further scope for gains. However, price action will need to close convincingly above 54.42 to confirm this bias. The next main target to the upside is at 57.50 where resistance is most likely to form. To the downside, failure to breakout above 54.42 could lead to oil prices drifting sideways, supported above the 51.70 floor.
