As we await final conformation from the meeting, lets have a look at the where the price can go
Brent has run into one of the main resistance points in the recent range around 51.20.
Brent crude daily chart
First the warning. The near tech is unlikely to play a part with all these headlines flying about. A confirmation on the deal will have the price all over the place. The deal is taking shape and as I type, the latest headlines are that discussions are now focussing on monitoring the deal. It's said that 3 OPEC and 2 non-OPEC members will be tasked with that.
It's also coming out that Russia will settle for a 200kbpd cut, not the 400k they pushed back on earlier.
By and large it looks like the deal is done and they're just sorting out the logistics of it, so that could be important for what the price does next. If that is the case, and we get a deal that's around what's been touted, we're likely to get a kneejerk pop possibly followed by a sell the fact move.
Anything up near the 53-54.00 highs might be the place where that kneejerk runs out, if we get there at all. The jump today has been very impressive but it's all on pricing in the headlines we've heard. Unless we get something we're not aware of, it's going to be hard to see much more upside. And remember, the likely start date for the deal is January, so plenty of time for producers to keep pumping until they have to cut or freeze.
Long and short, there might be very little left in the upside tank but this is oil and that "very little" could be another 200 ticks.
For an indication of how the price has moved on prior meetings and deals, oil guru Sam Madani has detailed them on a WTI chart.
If you've been riding the train up, this is probably the time you want to think about locking your profits in or taking a big chunk off the table.
