OPEC+ members announced on Sunday their agreement to extend voluntary oil output cuts of 2.2m barrels per day into Q2, aiming to stabilize the market and support oil prices. Saudi Arabia, the de facto leader of the oil cartel, committed to prolonging its substantial voluntary cut of 1m bpd through the end of June, effectively maintaining its production levels around 9m bpd. Additionally, Russia announced it would reduce its oil production and exports by an extra 471k bpd Q2.
Technically speaking, WTI’s rise from 67.79 is still seen as a corrective bounce for now. Further rally is expected as long as 78.07 support holds, to 100% projection of 67.79 to 79.15 from 71.32 at 82.68. However, strong resistance could emerge below 61.8% retracement of 95.50 to 67.79 at 84.91 to limit upside and bring reversal.
