The price of crude oil is higher on the day but well off the high levels. The weekend’s OPEC+ decision to raise output by 137,000 barrels a day in October was already priced in after last week’s retreat, and the smaller-than-usual hike is seen as a signal producers remain committed to defending prices.
Analysts note this restrained approach eases fears of oversupply, while ongoing geopolitical risks—from the Russia-Ukraine war to potential new U.S. sanctions—are adding further support to the market.
Nevertheless, the high price extended to $63.34 before rotating to the downside and reaching toward the low from earlier in the day near $61.85.
Last week, the low price on Friday extended to $61.45, which equaled the low price going back to August 18. Ultimately, if the sellers are to take more control, getting below that double bottom is required. Looking at the daily chart below, the risk is a move back above the 100 day moving average currently at $64.28. As long as the price can remain below that level, the sellers remain more in control.
