Brent is flashing red in Asia, possibly because traders expect output to rise, courtesy of OPEC deal. PEC agreed on a “nominal” production increase of 1 million barrels a day. Brent oil fell in Asia as traders price-in an expected output increase that was announced by the Organization of the Petroleum Exporting Countries (OPEC) on Friday, according to Reuters. However, the narrative lacks substance as the OPEC announced a less-than-expected production hike. Also, the 600,000 barrels per day hike in output will likely not have a big impact on demand-supply dynamics as the cartel, including non-OPEC members and Russia have since 2017 cut output by 1.8 million barrels per day (bpd). Further, OPEC’s language was vague. And last but not the least, the structure of the deal is such that each country can only increase production on pro-rata basis. Accordingly, the only country which can boost output is Saudi Arabia. Clearly, the structure and the language of OPEC deal is biased to the oil bulls. That said, the rising trade war fears could have weighed over oil prices in Asia. At press time, Brent oil is trading at $74.00 – down 1.72 percent on the day. Brent oil Technical Levels Resistance: $74.34 (5-day MA), $74.80 (10-day MA), $75.76 (50-day MA). Support: $73.66 (previous day’s low), $73.04 (June 21 low), $71.26 (100-day MA). FX Street FX Street FXStreet is the leading independent portal dedicated to the Foreign Exchange (Forex) market. It was launched in 2000 and the portal has always been proud of their unyielding commitment to provide objective and unbiased information, to enable their users to take better and more confident decisions. View All Post By FX Street FXStreet News share Read Next GBP/USD holding steady on a lackluster Monday as Brexit continues to go nowhere FX Street 5 years Brent is flashing red in Asia, possibly because traders expect output to rise, courtesy of OPEC deal. PEC agreed on a "nominal" production increase of 1 million barrels a day. Brent oil fell in Asia as traders price-in an expected output increase that was announced by the Organization of the Petroleum Exporting Countries (OPEC) on Friday, according to Reuters. However, the narrative lacks substance as the OPEC announced a less-than-expected production hike. Also, the 600,000 barrels per day hike in output will likely not have a big impact on demand-supply dynamics as the cartel, including non-OPEC members and Russia have… Regulated Forex Brokers All Brokers Sponsored Brokers Broker Benefits Min Deposit Score Visit Broker 1 $100T&Cs Apply 0% Commission and No stamp DutyRegulated by US,UK & International StockCopy Successfull Traders 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 2 T&Cs Apply 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 3 Recommended Broker $100T&Cs Apply No deposit or withdrawal feesTrade major forex pairs such as EUR/USD with leverage up to 30:1 and tight spreads of 0.9 pips Low $100 minimum deposit to open a trading account 9 Visit Site FreeBets ReviewsYour capital is at risk. 4 T&Cs Apply Visit Site FreeBets ReviewsYour capital is at risk. 5 Recommended Broker $0T&Cs Apply Trade gold, silver, and platinum directly against major currenciesUp to 1:500 leverage for forex trading24/5 customer service by phone and email 9 Visit Site FreeBets ReviewsYour capital is at risk.