Chart - Courtesy Trading View
Oil prices reversed the steep losses seen through March and surged higher in early Asian trade on Monday.
West Texas Intermediate crude rose over 5% to $81.51 a barrel before paring some gains and was trading close to levels seen in late-January at the time of writing.
The surprise move by the Organization of Petroleum Exporting Countries and allies, (OPEC+) was the main reason behind the surge.
OPEC+ said on Sunday that it will cut production by about 1.16 million barrels per day (bpd), ducking prior expectations that the cartel will maintain output.
OPEC+ unexpectedly cut production further to stabilize markets hit by fears of slowing economic growth and a potential banking crisis.
Oil prices had crashed to 15-month lows in March after the collapse of several U.S. banks stoked concerns over slowing economic growth and weakening crude demand.
Major Support Levels:
S1: 78.37 (110-EMA)
S2: 75.30 (55-EMA)
Major Resistance Levels:
R1: 82.63 (55-week EMA)
R2: 84.10 (200-DMA)
Summary: US oil poised to extend gains, trades with a bullish bias. Scope for test of 200-DMA at 84.10.
