- WTI and Brent push higher this morning after Iranian Oil Minister Zanganeh said we could be looking at more OPEC cuts
WTI and Brent continue to push higher this morning after comments by Iranian Oil Minister Zanganeh who said he expects further cuts to be agreed at the 5th/6th December meeting.
In a reaction to these comments, WTI is headed toward the previous wave high of USD 56.86 per barrel. There have been lots of comments over the last few weeks about rumours of cut but nothing in the way of the amount or duration.
Generally, with oil markets, traders try and front-run with guesses and rumours. The oil market has been under pressure of late as Chinese grown slowed and PMI’s from around the world fell. Some analysts have cited the trade war between the US and China for being the main reason for the global slowdown.
Currently, there has been more optimism about the talks between the two powerhouses and European PMI’s improved this morning. Topping that, these comments from Iran’s Zanganeh really sent WTI and Brent soaring.
On the daily chart below, we can see the price aiming for the previous wave high but there is a resistance level very close by. If the buying pressure continues then this level could be under threat. The trendline on the chart has been broken off the back of the aforementioned comments and now WTI could be shaping up for a good run.