In Asia, oil prices were traded in the green today on news from Texas, but media reports of
OPEC + disagreements eased the bullish momentum.
Analysts estimate that abnormally cold weather in Texas has led to a 4 million barrels per day cut in production and a 21 billion cubic feet cut in natural gas production. According to preliminary estimates, repair crews will need several days to restart oil and gas production. Oil refineries are only calculating the damage so far. The recovery could take up to three weeks, analysts said. Slow recovery in US production supports oil prices.
At the same time, the rise in oil prices is limited by growing concerns about an increase in production from OPEC +. According to Bloomberg, Russia and Saudi Arabia offer different strategies for further production. Saudi Arabia is in favor of maintaining current production volumes against the backdrop of high uncertainty about the prospects for demand. Russia has been in favor of increasing production since April. Recall that the next OPEC + meeting will be held on March 4.
On the chart, the struggle is for the 60.00 level. A breakdown of this mark will open the way to further growth of quotations towards the level of 61.25. Otherwise, the further development of the sideways trend at 58.50-60.00 awaits us.
The main scenario is a decline to 58.50.
An alternative scenario is a breakdown of resistance at 60.00 and an increase to 61.25.
The current fundamental background is neutral. Consider selling with very moderate risks from the level of 60.00.
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