Crude oil prices rose higher on Tuesday and continue to trade higher on Wednesday morning after Saudi Arabia declared to curb November crude oil exports by 7% or 560,000 barrels a day as a measure towards market rebalancing. WTI Crude oil gained 0.39% to trade at $51.12 as of 8:00 GMT.
The increase in crude oil prices has added to worries of a possible increase in shale oil production which becomes profitable at about $50 per barrel.
OPEC’s Secretary-General Mohammed Barkindo on Tuesday said: “We urge our friends in the shale basins of North America to take this shared responsibility with all the seriousness it deserves, as one of the key lessons learned from the current, unique supply-driven cycle.”
Technical view
The previous pattern, “Falling Wedge” target has been reached.
A break above $51.25 and close of an hourly candle could lead towards $52-$53 level. Support holds at $50.25. Currently, crude oil prices are in the middle of the neutral range and reflect consolidation.