Crude Oil Technical Outlook: Oil Surges on Saudi Surprise â Key Levels to Watch 2021-01-09 22:00:00 Justin McQueen, Analyst
CRUDE OIL TECHNICAL HIGHLIGHTS: Neutral
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Oil Surges on Saudi Surprise and Market Melt-Up
The oil market has gotten off to a strong start to begin 2021 with Brent and WTI crude futures posting weekly gains of circa 6%. In turn, oil prices are trading at its highest level since February/March at $55 and $51 for Brent and WTI respectively. While the continued pick up in risk sentiment, bolstered by a Democrat sweep following the Georgia runoff elections, has supported oil prices, the main factor at play had been Saudi Arabia’s surprise decision to make a unilateral pre-emptive cut in oil production by 1mbpd (10% of current production) throughout February/March. As such, with OPEC de-ris