Selling continues after settlement
Oil has had a spectacular run this month, gaining nearly 20% but it’s finishing on a soft note. Crude is down $2.04 to $61.39 after settling at $61.50.
The OPEC+ meeting is on March 4 and some type of production hike announcement is certain; the only question is ‘how much’.
The baseline is a 500k bpd hike with Saudi Arabia announcing it will let some or all of its voluntary cuts expire or start to expire in April. There could be trouble if Russia wants to pump more.
For me, the simple trendline from the start of February is the key line in the short term, followed by the uptrend since October.
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