Last Sunday, the Organization of the Petroleum Exporting Countries and its allies (OPEC+) agreed to increase oil production volumes further from October, but at a slower rate than in previous months. This decision was driven by rising expectations of weaker global demand for crude. Eight OPEC+ members are set to boost output by 137,000 barrels per day (bpd) next month, which is significantly lower than 555,000 bpd in August and September, as well as 411,000 bpd in June and July.
From a technical perspective, Brent has repeatedly attempted to break through the support area between $65.0 and $66.3 over the past month. Oil prices touched the upper boundary of this range in June but failed to breach it, ultimately bouncing off. The present technical setup suggests that the lower limit of the resistance zone sits at $68.7, which is higher than the current price. Brent could climb to this level and then plummet, with the first target at $63.5 per barrel. However, if oil breaks above this resistance and surges to $70.3, the bearish scenario might be invalidated. In that case, it is recommended to close short positions at this level to limit losses.
The overall recommendation is to sell Brent crude from $68.7. Profits should be taken at $63.5. Stop Loss could be set at $70.3.
The volume of the open position should be calculated so that the potential loss (protected by a Stop Loss order) does not exceed 1% of your deposit. If your account balance does not allow opening a position of this size, it is better to avoid entering the market on this signal and wait for other trade options that meet low-risk criteria.
