Crude oil prices edged higher on Friday but trade lower on Monday morning supported by limited supplies. Crude oil rose last week due to the ongoing disruption to the Keystone pipeline connecting Canada’s Alberta oil to U.S. refineries. The line was shut down last week following a 5,000-barrel spill in South Dakota.
In the meanwhile, a report revealed that OPEC and Russia agreed to extend output cuts beyond March, ahead of the OPEC Nov.30 meeting which boosted sentiment.
Technical view
The crude oil daily chart has formed a “Rising wedge” pattern. The last few market sessions have been bullish and are about to retest the channel’s resistance line as seen in the chart.
The market is expected to reach test the channel’s resistance levels in the upcoming sessions. Resistance holds at $59 and the support holds at $57.50.