The OPEC meeting is due to end today. However, Russia and Saudi Arabia, two of the leading oil producers declared on Monday that they will extend the current oil production cuts. OPEC is expected to maintain production at the current levels for up to nine months. The decision led to a muted response in the oil markets. WTI crude oil was down 0.61% on the day.
Is There Scope for Oil Prices to Rise?
WTI Crude oil is seen currently trading within the range of 60 and 57.50. The recent reversal that came close to the $60.00 handle has led to oil prices slipping lower. However, the support level at 57.50 is yet to be tested. We expect to see oil establishing support near the 57.50 handle more firmly. This will keep the upside bias intact. However, in the short term, we expect oil to remain trading flat.
