With OPEC and Russia’s plans of cutting the production of oil up to 1.2 million barrels per day for next year, the price of crude oil looks to be reacting to that already with the year end approaching.
The price has bounced off a Monthly support at $41.95 per barrel after a bearish move of 12 weeks straight, setting up a potential Head-and-Shoulders pattern. Buyers will start looking at buying opportunities at/above this level should the bullish momentum continue into the new year, with their sights at a resistance of $54.50 per barrel. This, however, is going to be a trade held for a very long period considering the fact that this is a setup from a Weekly time frame.
WTI Crude Oil