Crude oil prices dipped lower on Friday and edge up on Monday as investors react to the news of talks between Saudi oil minister with his Venezuelan and Kazakh counterparts on Sunday regarding the possible extension to cut global oil supplies beyond March 2018.
Hurricane Irma knocked out power to more than 3 million homes and businesses in Florida on Sunday. U.S. investment bank Jefferies said: “Most refineries are restarting and we expect a near-full recovery by month-end,”
Oilfield services firm Baker Hughes in its report said: “its weekly count of oil rigs operating in the United States declined by 3 to 756.
Crude oil prices have formed a “Megaphone chart pattern” as prices failed to hold above the resistance line at $ 49.50 and above the 200-day moving average prices at $50. It’s likely that crude oil prices will make their third attempt and retest leading towards $ 47.50. Additional support holds at $ 46.60 which is slope support line.
Indication: on the daily chart, the 50-day moving average crossed the long term 100-day moving average at $47.40, indicating bullish momentum.