Oil prices rallied after the latest OPEC rally on production, alongside Middle East tensions.
UKOIL – Daily Chart
The price of Brent Crude (UKOIL) has found support at the August lows and is pressing a level that was support in July. Getting above that price could target $70 or higher.
The main driver for oil has been the latest OPEC+ meeting, which led to a 136K barrels per day production increase. The group was deciding on how to work on another 1.65 million bbls/day in voluntary cuts over the coming months.
The majority of the 1.65 million barrels will fall on Saudi Arabia, which can ramp production quickly than most countries.
Markets had been extremely bearish last week, but the smaller increase was a relief. The price of oil has also risen after Israel’s airstrike on a residential location in Qatar.
The move brought widespread criticism after the country attacked political targets in a friendly and neutral country. Countries such as the UAE have stated that the move risks undermining the Abraham Accords, which were signed in 2020 to enhance relations in the region.
