UKOil has pushed into its bullish channel, between the upper blue and red bands. Its daily RSI is also above 50, which is the bullish side of the indicator. If these positions are held, there will be an underlying support for UKOil.
There is a general buoyancy to energy prices as supplies continue to be tightened, with expectations that OPEC+ will extend output cuts until year end. Moreover, Russia will reduce oil exports, with the details to be announced next week.
Saudia Arabia is likely to rollover their 1m bpd cut into October. This will be the third consecutive months that the cuts have been rolled over.
Senior Market Specialist
Russell Shor joined FXCM in October 2017 as a Senior Market Specialist. He is a certified FMVA® and has an Honours Degree in Economics from the University of South Africa. Russell is a full member of the Society of Technical Analysts in the United Kingdom. With over 20 years of financial markets experience, his analysis is of a high standard and quality.