Saudi oil minister announced that from December the country will produce half a million barrels a day less oil. Al-Falih explained this decision with a seasonal reduction in demand. Information surprised the markets, the opening of the trade price of oil WTI jumped by more than a dollar and was above the round level of 60 USD. Still, it is less than 20% lower than the highs from the beginning of October.
Earlier this year, Saudi Arabia increased production by a million barrels under the pressure of Donald Trump and other trading partners. This was to be compensated for the reduced supply caused by the sanctions imposed on Iran. Recently, another information has appeared, this time from the side of Kuwait. Representatives of the country said that it may be necessary to limit production in order to maintain the balance on the market. Cuts can be introduced from next year. For now, however, we do not know the details of the scale of the planned cuts.
Let's now take a look at the Crude Oil technical picture at the H4 time frame. This information hit the market after a record series of ten declining sessions on the Crude Oil market in a row. As part of them, the rate fell the lowest since spring, and since the October high it has departed by over 20%. The Friday low is seen at the level of 59,30. It evokes a big bounce and opens up with a gap and an increase to 61.30. However, it is currently blanked out and quotes descend to support 60.50. The next target levels for bears are at 58.55 and 58.06. The technical resistance is seen at the levels of 61.36 and 62.36.
