The price of crude oil is settling up $0.93 or 1.39% at $67.93. That comes despite a large and expected production boost announced by OPEC+ over the weekend. The high price today reached $68.28. That was the highest level since June 23.
Members of OPEC+ expected to increase by 411,000 barrels per day as it looks to speed up the 2.2 million barrel per day voluntary production cuts. Instead , the group increased production by 548,000 bpd.
In a statement, the group said:
"In view of a steady global economic outlook and current healthy market fundamentals, as reflected in the low oil inventories, and in accordance with the decision agreed upon on 5 December 2024 to start a gradual and flexible return of the 2.2 million barrels per day voluntary adjustments"
Technically, the price remains below both its 100-hour moving average at $66.48, it's 50% midpoint of the move up from the April low to the June high at $66.33 and also above the 200 hour moving average at $65.85. If the bias is to turn more to the downside, moving back below those levels is required. Absent that, and the buyers are more in control.
