U.S. West Texas Intermediate (WTI) crude futures were up 1.6%, or 38 cents, at $24.52 after touching a high of $24.77.
Saudi Arabia said overnight it would cut production by a further 1 million barrels per day (bpd) in June, slashing its total production to 7.5 million bpd, down nearly 40% from April.
“This reduction in production provided excellent optics encouraging other OPEC+ members to comply and even offer additional voluntary cuts, which should quicken the global oil markets` rebalancing act,” Stephen Innes, chief global market strategist at AxiCorp, said in a note. OPEC+ is a group comprised of members of the Organization of the Petroleum Exporting Countries (OPEC) and other producers including Russia.
IMPORTANT LEVELS FOR 12/05/2020
RESISTANCE 1 – 1880
RESISTANCE 2 – 1908
RESISTANCE 3 – 1929
SUPPORT 1 – 1849
SUPPORT 2 – 1827
SUPPORT 3 – 1806
ProCapitas Market-Pro Team