Crude oil prices recovered from the sell-off on Friday. The gains came amid rumors that OPEC and its members will be prolonging the production cuts. Reports indicated that Saudi Arabia will be pushing for oil restrictions through the middle of 2020. The gains in oil prices also came after the data over the weekend showed that China’s indicators beating estimates.
WTI Stays Range-Bound for the Moment
Despite the bounce, crude oil prices remain within range of 57.64 and 54.71. Currently, the retracement could result in a bearish flag pattern. If the pattern is validated, then a downside breakout could result in further declines. However, price action is on track to test the lower support at 54.71.