Brent oil remains volatile around 86.791. If Saudi Arabia extends its production cut plan for another month, the price of Brent crude oil may be close to US$90 per barrel. Saudi Arabia is expected to announce its October production cuts within days. The 1 million barrel/day production cut plan has lasted for two months, and Saudi Arabia has said it will extend the production cut plan until September.
UKOil - 4-hour K-line chart shows:
Brief technical analysis:
Looking at the 4-hour chart: the bullish momentum fluctuates and climbs at a high level, and continues to move upward in the short term. The market’s bullish momentum shows no signs of stopping yet. The MACD indicator is in the bullish zone and continues to move upward. The RSI indicator is in the bullish zone and is moving upwards.
Resistance level: 87.100 87.408
Support level: 86.326 86.007
Trading strategy: Bullish above 86.617, target 87.100 87.408
Alternative strategy: bearish below 86.617, target 86.326 86.007