Following the recent OPEC+ decision to increase oil production by 547,000 barrels per day in September, prices have started to slide-just as anticipated . This surge in supply is reversing years of output cuts and is already weighing heavily on market sentiment.
Technical Setup
• Price action is showing clear signs of weakness post-announcement.
• The red zone on the chart marks a critical support area-any daily close below it could trigger a sharp sell-off.
• Our target is set at $59, aligning with broader market expectations and potential oversupply concerns.
Fundamental Drivers
• The production hike is part of OPEC+'s strategy to reclaim market share.
• Analysts warn of a possible global surplus later this year, especially if demand softens amid economic uncertainty .
• Brent and WTI futures have already dipped, reflecting bearish sentiment across the board
* Trade Strategy
This setup combines technical precision with macro fundamentals. If price breaks below the red zone, it could be the ignition point for a swift move toward $59. Eyes on the close-this could be the moment the bears take control.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.