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Brent Crude Oil is confirming a 1-3 month base, currently trading at $39.10, while the next resistance sits at $39.70, as strategists at Credit Suisse note.

Read: Saudi Arabia, Russia preliminary agree on one-month extension of existing oil cuts – Reuters

Key quotes

“Brent Crude has extended its strong recovery as expected from its multi-year price support from the 1990s and early 2000s at $16.65/14.53 and has managed to break the 38.2% retracement of the Q1 collapse at $37.28, which has now established a base on a 1-3 month horizon.” 

“Resistance can be seen at the March price gap, starting at $39.70 and stretching up to $45.18/50.” 

“Near-term support is seen at 33.62, but only a drop below the 63-day average, currently at $30.23 would question the recent strength seen.”