Stuck in a two-month range: Can oil break out after Saudi and Russian cuts?

Can oil break above its two-month range after Saudi and Russian cuts?

Can oil break above its two-month range after Saudi and Russian cuts?

Oil prices are higher again today but still remain within their two-month range. The rally has been aided by the cuts announced by Saudi Arabia and Russia this week but ultimately, another failure to break above the range will suggest traders have largely shrugged it off.

The previous high in Brent two weeks ago came just above $77 and a failure to hit that will represent yet another lower peak over the last month or so and may, therefore, merely confirm that we remain in a very gradual consolidation. We do appear to have seen a slight uptick in momentum over the last couple of days though so perhaps we’re going to see a real test of the previous peak, a break of which could be quite bullish.

Craig Erlam

Based in London, Craig Erlam joined OANDA in 2015 as a market analyst. With many years of experience as a financial market analyst and trader, he focuses on both fundamental and technical analysis while producing macroeconomic commentary. His views have been published in the Financial Times, Reuters, The Telegraph and the International Business Times, and he also appears as a regular guest commentator on the BBC, Bloomberg TV, FOX Business and SKY News. Craig holds a full membership to the Society of Technical Analysts and is recognised as a Certified Financial Technician by the International Federation of Technical Analysts.

Topics

oil prices Russia Bullish consolidation saudi arabia momentum rally cuts traders two-month range failure to break lower peak gradual consolidation previous peak

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Can oil break above its two-month range after Saudi and Russian cuts?

Craig Erlam

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