Oil prices extend higher in first trading hours of 2017, this Tuesday morning, buoyed by a deal for OPEC and non-OPEC production cuts which kicked off on Sunday.
1st January 2017 marked the official start of the deal agreed by OPEC and non OPEC member countries such as Russia in November last year to reduce output by almost 1.8 million barrels per day. January will serve as an indicator for whether the agreement can stick.
Libya, one of two OPEC member countries exempt from the deal, increased its production to 685,000 barrels per day (bpd) as of Sunday, up from 600,000 a day in December.
Among OPEC member countries, Oman notified its customers last week that it will cut its crude term allocation volumes by 5 percent in March.
Non-OPEC member Russia’s oil production in December remained unchanged at 11.21 million bpd, but it was preparing to cut output by 300,000 bpd in the first half of 2017 as part of its efforts to join the global deal to reduce oversupply and rebalance the market
Price is making HH, HL but slowing down significantly. I’m still a bull, but decide to trade this week with caution as both WTi and Brent prices opens up at WM3 and MM3 (Bear Zone) and overly extended on 4hr and daily. I’d like to wait for deeper correction before jumping in again.