Trading position (short-term; my opinion; levels for crude oil’s continuous futures contract): Since we reached our target of $68.2, my position now is to wait and watch for a few trading sessions.

Oil prices have been on a rise after the OPEC+ concluded its meeting deciding to follow the earlier plan of increasing oil production gradually.

Oil Market: Key Updates

• A very quick and swift meeting of OPEC+ (not even half an hour) ended, and the alliance led by Saudi Arabia and Russia agreed to stick to the earlier plan with respect to the monthly oil output increase in July (after hikes in May and June).
• Saudi Energy Minister Prince Abdulaziz bin Salman revealed that he has no illusions by addressing the latest net-zero road map by IEA as out of the "La La Land" movie.
• Overall, OPEC+ maintains a cautious approach to increasing oil production, which leads to hikes in prices.

Rising demand from the US, China and Europe and a catch-up from India and Japan later on will create an acute supply-demand gap leading to higher oil prices.

Note: Our trading positions changed since we successfully hit the target.

Thank you.

Nishant Jain, MBA, CPSM
Oil Trading Strategist