Oil prices are given a lift after Saudi Arabia agreed to a larger production cut with OPEC+ allies. The world’s largest oil exporter agreed to make additional, voluntary cut of 1m barrels per day in February and March. The move led to an overall cut of over 900k bpd in production by OPEC+.
Saudi energy minister Prince Abdulaziz bin Salman said, “as we see light at the end of the tunnel, we must — at all costs — avoid the temptation to slacken off our resolve. Do not put at risk all that we have achieved for the sake of an instant but illusory benefit.”
WTI crude is expending recent rally after brief set back, and it’s now back above 50. Further rise should be seen to channel resistance at 51.71. Some resistance would likely be seen there to limit upside and cap momentum. However, sustained break there would indicate upside acceleration and open up the case for further rally to 65.43 medium term resistance next.