OPEC plans to diminish output to a range of 32.5 to 33.0 million barrels per day from its current estimated output of 33.24 million barrels per day. While Saudi Arabia, OPEC’s biggest producer, has agreed to reduce output, Iran, Libya and Nigeria might not follow suit.
Obviously, production is a key element in the decision-making process regarding energy investments. Currently, oil investors face conflicting reports regarding output. For example, Venezuela’s crude output is plunging to multi-year lows while Algeria is looking to boost production.
If price indeed needs to make another low, it might embark from near the present area that has resistance at 11.55 and also at 12.00. The prospect of a downward turn appears favorable since the adaptive CCI indicator at the bottom of the weekly chart is testing near its zero line – an event that often coincides with reversals. October also lines up as a projected high in the 60-week cycle that we monitor on futures charts,” adds See It Market.
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