- Oil hits two year high on OPEC –led supply cuts and declining inventories. OPEC is likely to extend its production cut till end of 2018. OPEC is scheduled to meet in Vienna on Nov 30th.
- Crude oil exports from the United States hit another record last week at 2.133 million bpd and breached 2 million for the first time. US Oil price also supported by declining crude inventories. US inventories fell by 2.4 million barrels despite 46K bpd increase in production.
- Technically, WTI crude has formed golden cross (50 –day MA cross 233- day MA) and this confirms minor bullishness and jump till $58/$60. The near term major resistance is around $55.20.
- On the lower side, near term support is around $53.49 (7- day MA) and any break below will drag the oil down till $53 (10- day MA)/ $52.16 (daily Kijun-Sen).
It is good to buy on dips around $53.75-$53.80 with SL around $53 for the TP of $56/$58.
