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CRUDE OIL OUTLOOK 12.05.20

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Oil price futures rose on Tuesday, boosted by an unexpected commitment from Saudi Arabia to deepen production cuts in June to help drain the glut in the global market that has grown as the coronavirus pandemic crushed fuel demand. Brent crude futures climbed to a high of $30.11 a barrel and were up 0.8%, or 24 cents, at $29.87 at 0206 GMT, reversing some of the previous session`s losses. The benchmark fell to $1.34 on Monday.

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

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ProCapitas Market-Pro Team

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