Brent Crude Maintained Positive Climb This Week, and Is Traded Above $90 Ahead of OPEC+ Meeting Tomorrow

Key Fundamentals for Brent Oil

Despite the fact that the cartel still struggled to meet its planned production during the summer, a strong US Dollar forced the crude oil price into a downtrend since June. Saudi Arabia, OPEC’s de facto leader, last month announced that the cartel will cut the production by 100,000 barrels per day.

However, market volatility and uncertainty in markets due to rate hikes, got Saudis thinking of cutting production to 1,000,000 barrels per day (bpd). According to the report published by the cartel, average daily production in Q2 2022 was 28.59M bpd. When the 1M bpd cut is confirmed, which stands for 3.49% of the current production, Brent crude price may soar to levels near $100, also supported by decrease in inventories.

Technical Analysis and Price Forecast

As stated in my previous article, Brent crude price was squeezed in a descending triangle, and a breakout from the triangle was expected, so it happened as seen on the chart below.

At the time of writing of this article, Brent crude price is traded at $90.82 trying to hit the key resistance of $91.60 up ahead. I do anticipate the price to slow down a bit when reaching the aforementioned resistance, however the path to $101 stays clear.

Key levels to watch are:

Support – $89.50

Resistances – $91.60, $98.33, $101