Oil Slips as OPEC+ Eyes November Output Hike.
Oil prices dip amid reports that OPEC+ is considering an additional production increase.
FUNDAMENTAL OVERVIEW:
Oil prices dropped sharply on Monday, pressured by the resumption of crude exports from Iraq’s Kurdistan region through Turkey and reports that OPEC+ plans another production increase in November.
Both benchmarks had surged nearly 5% last week amid concerns over Russian fuel export disruptions following Ukrainian drone attacks on key energy infrastructure. However, the International Energy Agency warned that OPEC+’s policy could push the market into a record surplus by 2026 as supply growth outpaces demand.
Iraq restarted crude shipments from the semi-autonomous Kurdistan region via Turkey on Saturday, ending a suspension of over two years. Initial flows were estimated at 180,000–190,000 barrels per day, with potential for further increases in the coming months, according to the ministry.
The restart follows an interim agreement between Baghdad, the Kurdistan Regional Government, and foreign oil companies, resolving a deadlock that had halted exports through the Kirkuk-Ceyhan pipeline since March 2023.
CRUDE OIL TECHNICAL ANALYSIS CHART:
Technical Overview:
Crude Oil is trading within a down channel.
Crude Oil is moving above all the Moving Averages (SMA).
The Relative Strength Index (RSI) is in Buying Zone, while the Stochastic oscillator suggests Neutral trend.
Immediate Resistance level: 66.32
Immediate support level: 63.64
HOW TO TRADE CRUDE OIL
Crude oil, after a sharp decline, found support and reversed higher, forming a triple bottom pattern that propelled prices upward. Currently, the price is facing resistance and pulling back. If it finds support near the trendline, aligning with key Fibonacci levels, the uptrend could resume.