Crude remains rangebound

23 may

Crude oil bounced sharply in early trade this morning, recovering all of yesterday’s losses at one stage. Prices rallied off the lower end of support and pushed back into the trading range which has been building since the beginning of this month. As far as front-month WTI is concerned, there’s a fairly well defined range with the area around $77.00 marking the lower end, and $80 at the top. This would suggest that the path of least resistance should point higher for now, particularly as the daily MACDs for both Brent and WTI, while still in ‘oversold’ territory, appear to be turning up. But prices reversed direction later in the day and went on to retest support. This weekend sees meetings between OPEC and OPEC+ members. There’s plenty on consider as members will need to decide if they are going to make any changes to the production cuts which were first agreed back in November. The probability is that the current curbs on output, which are due to expire at the end of June, will be extended through the third quarter.