[Bitop Market Review] Crude Oil Strategy Analysis

28/11/2023 07:53:03

When will crude oil prices rebound?


During the Asian market session on Tuesday, November 28th, crude oil prices are currently trading around $75.30 per barrel. OPEC+ sources mentioned on Monday that despite the policy meeting being postponed until this Thursday, there are considerations within OPEC+ for further reductions in oil production. However, until any formal announcement is made, the market's risk appetite for purchasing crude oil remains limited.


Analysts at Bitop stated that since July, Saudi Arabia has unilaterally cut production by 1 million barrels per day and is now seeking further support from OPEC+. This proposal arises amidst challenging negotiations within OPEC+. Investors should closely watch the outcome of the OPEC+ meeting on November 30th and adjust investment strategies promptly.


Crude oil prices continue to fluctuate within the lower range, predominantly influenced by bearish sentiment. The price is restricted within the range by the moving average system, as yesterday's rebound was swiftly suppressed. It is anticipated that today, crude oil will persist in a downward range within the interval, testing the previous low point at $73.80 per barrel. Current oil prices are still suppressed below the $77 per barrel mark, indicating a restrained fluctuation at the lower end. The market's momentum will remain bearish until the oil price breaks through and stabilizes above the $77 per barrel mark.


Considering the comprehensive analysis, the suggested short-term strategy for crude oil today emphasizes bearish dominance after a rebound, with buying support at lower levels. Immediate resistance above is observed between $76.0-$77.0 per barrel, while short-term support below is around $73.0-$72.0 per barrel.