Brent Crude – Oil slips as OPEC+ looks to maintain cuts for now

• OPEC+ expected to leave output unchanged until the end of the year
• Saudi Arabia and Russia are also expected to leave restrictions unchanged
• Brent falls more than 5%

Oil prices have fallen more than 3% today as OPEC+ looks set to leave their output targets unchanged, while Saudi Arabia and Russia reaffirmed their commitment to additional cuts until the end of the year.

That may not sound particularly bearish for oil but in doing nothing, the group is leaving the door open to output increases from the turn of the year which arguably is bearish for price.

It will all depend on the outlook for the economy and how balanced the market is later in the year but it has taken some of the heat out of the market and makes $100 oil less likely.

Brent slides through various support levels

Brent crude has fallen quite aggressively today, off more than 5% taking out various technical support along the way.

BCOUSD Daily

Source – OANDA on Trading View

That includes a significant break of the neckline of the recent double top which is roughly $4.35 in size. It didn’t take long for oil prices to match that below, which is often used as a possible price projection following such a breakout.

Of course, these things aren’t perfect or guaranteed but on this occasion, it did so with relative ease and speed.

It has since run into support around $86 – near the 38.2% Fibonacci retracement level – with the next area of notable potential support below falling around $83 where there’s a combination of moving averages and the 50% Fib level.

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