The daily FXCM Brent CFD, UKOil, is trading in its strength zone between the upper blue and red bands. It has underlying solid momentum with its stochastic comfortably above 80 (blue rectangle). The longer the oscillator holds current levels, the more bullish the pressure.
The hourly chart on the right shows UKOils momentum oscillator heading up and that its trend-following EMAs are positive (red ellipses). The short-term momentum will be price supportive if they develop angle and separation whilst the stochastic moves towards the blue arrow.
A report is circulating that some OPEC members are looking at exempting Russia from any agreement to boost supply targets. Russia is lagging behind its output quota following imposed sanctions due to its invasion of Ukraine. If Russia is exempted, other members will need to fill the gap.
OPEC+ are due to meet on Thursday to approve a planned increase in production by 432K barrels/day.
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.