Brent leads the way as producers start to lock down production
Oil markets are higher today as the oil deals start to come into effect. Brent has been as high as 58.37 from a 56.94 low, round about where it opened.
Brent crude daily
59.50/70 is the area I see that might offer the next significant resistance, followed by the 60.92 (call it 61.00), being the 38.2 fib of the 2014 drop. That level offered support back in Apr-Jul 2015 before we broke down through it, so it's a level to watch irrespective of the fib.
The big deal for oil now is whether the OPEC/Non-OPEC deals goes the distance or whether cracks start appearing among producers who look for ways to squeeze out more than their agreed quota's. I'll be very surprised if we get production numbers that are bang on those quotas and they'll probably be on the higher side than lower.
In the first half of the year we'll also have to see what plans come to the fore about continuing or amending the deal once it reaches its end date.
