Analysis of crude oil in the near term

Oil at the basic level

OPEC announced on Saturday that it will increase oil production by 411 thousand barrels per day in July.

The decision was made after member states assessed the global market conditions, including Saudi Arabia, Russia, Iraq, the United Arab Emirates, Kuwait, Kazakhstan, Algeria and Oman.

OPEC aims to gradually roll back the latest round of production cuts while maintaining the stability of the global oil market, as this adjustment indicates confidence in economic conditions, but also a willingness to adjust as necessary.

However, oil prices rose at the beginning of the week, especially with the escalation of geopolitical tensions, ignoring the OPEC agreement, after Ukraine launched drone attacks deep into Russian territory, but the rise in oil prices due to geopolitical concerns tends to be short-lived in the absence of major escalations, especially from the Russian side so far.

Oil at the technical level

Crude oil prices on Monday rose strongly by 2.6% to reach 62.15 dollars per barrel, trying to complete the shark harmonic model, which corresponds to the levels of a downward trend on the hourly frame near the levels of 62.30/40 dollars per barrel.

From there, we can expect some downward corrections for crude oil to target the levels of 61.30 dollars and then the levels of 60.10 dollars per barrel.

This scenario fails if the levels of USD 63.50 per barrel break higher.