Oil producers comprising of the OPEC and OPEC+ are inclined towards contemplating whether to extend current oil production cuts into 2021 or to gradually hike production from January as global demand displays some signs of resilience amid Covid-19 vaccine rhetoric. All this is set to be discussed in a series of meetings commencing today and being headed by the organisation’s de-facto leader Saudi Arabia.

Some informal discussions conducted by the OPEC+ during the weekend came short of a concrete agreement. All this jittery is as a result of the inability to reach a common ground in regards to the optimum production policy for the year 2021.

Technically, after an impressive rally from monthly lows around $34 per barrel, the bulls were capped off by an ascending resistance line. Despite a slight price correction just below $47.00, crude oil is on track to record a 20% monthly price gain for the month of November. The current technical setup is in favour of the bears as a healthy correction will target the linear regression line around the $43.00 handle.

Prices struggled to break the linear regression line from below as a result this line is supposed to transform into a strong support line. A bearish correction is being supported by the Relative Strength Index which has just turned back from the overbought region. The RSI is tinkering around 60, therefore a meaningful correction cannot be ruled out towards $43.50, sliding towards the red support before the bullish move can continue.

Oil Daily Chart.

The market trend is now overly bullish as indicated by the moving average. Last week’s trades as indicated by the 60, 100, and 200 Moving Average were all bullish as prices began to pick up the bullish momentum.

Trends

Moving Average	Simple	Exponential
60	40.09 BUY	40.80 BUY
100	40.74 BUY	40.22 BUY
200	36.04 BUY	40.90 BUY

Pivot Points (Daily)

Name	S3	S2	S1	Pivot	R1	R2	R3
US-Oil	44.26	44.52	44.84	45.10	45.42	45.68	46.00
Brent-Oil	47.11	47.31	47.55	47.75	47.99	48.19	48.43
Natural Gas	2.787	2.806	2.842	2.861	2.897	2.916	2.952

Pivot Points (Weekly)

Name	S3	S2	S1	Pivot	R1	R2	R3
US-Oil	39.15	40.72	43.12	44.69	47.09	48.66	51.06
Brent-Oil	24.49	43.19	45.69	47.39	49.89	51.59	54.09
Natural Gas	2.359	2.504	2.673	2.818	2.987	3.132	3.301