Crude Oil Price Update – Bullish OPEC+ News Triggering Breakout Rally with $80.00 Next Likely Upside Target

U.S. West Texas Intermediate crude oil futures are trading higher shortly after the New York opening on Monday on reports that an OPEC+ ministerial panel has recommended that the oil producing group stick to an existing pact to hike oil output by 400,000 barrels per day (bpd) in November.

At 13:31 GMT, December WTI crude oil futures are trading $76.77, up $1.19 or +1.57%.

This news is bullish because ahead of the meeting between OPEC and its allies traders were pricing in the chance of an increase in production due to consumer calls for more oil and cheaper crude. Big consumers, such as the United States and India, reportedly called for OPEC+ to add extra supplies to cool prices.

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. The trade through the previous main top at $76.26 reaffirmed the uptrend. A move through $72.82 will change the main trend to down.

The minor range is $72.82 to $76.96. Its retracement zone at $74.89 to $74.40 is potential support.

The short-term range is $69.05 to $76.96. Its retracement zone at $73.01 to $72.07 is another potential support area.

The retracement zone support will move up as the market moves higher.

Daily Swing Chart Technical Forecast

The direction of the December WTI crude oil futures contract on Monday is likely to be determined by trader reaction to $75.58.

Bullish Scenario

A sustained move over $75.58 will indicate the presence of buyers. Now that the main trend has been reaffirmed, the next upside target is the next main top at $76.98. This price is a potential trigger point for an acceleration to the upside with the psychological $80.00 level the next target.

Bearish Scenario

A break back under the old top at $76.26 will be the first sign of weakness. Crossing to the weak side of $75.58 will indicate the selling pressure is getting stronger. This could trigger a break into at least $74.89 to $74.40.