Crude oil prices posted a modest rally on Friday, gaining over 1.50% on the day. The gains came after reports showed that OPEC oil production dropped in June to 2014 lows.
OPEC production was recorded at 30 million bpd, down 170,000 bpd from May. This was the lowest output since April 2014 despite higher production from Saudi Arabia.
Crude Oil Maintains the Bearish Flag Pattern
Despite the gains on Friday, oil prices failed to clear the resistance level of 57.50. This has kept the bias to the downside. A breakdown off recent lows could validate the bearish flag pattern. This will see oil prices targeting the 50.00 handle. To the upside, if oil breaks past the 57.50 handle, we could expect to see prices settling back within the 60 and 57.50 range that was previously established.
