Selling Brent until its price reaches $63 per barrel

The OPEC+ oil producer group sticks to its earlier statements and plans to hike output by 411,000 barrels per day in July in order to regain its market share and punish unscrupulous cartel members for exceeding limits. 

After years of capping production by over 5 million barrels per day, or 5% of global demand, eight OPEC+ countries increased their crude output in April, then tripled it in May, June, and intend to do so in July. The group’s leaders Saudi Arabia and Russia are seeking to regain their market share, as well as curb their overproducing allies, such as Iraq and Kazakhstan.

This decision emphasizes that market share is at the top of the agenda. If the price level does not generate the desired revenues, they hope that profits will come from increasing output.

Growing oil supply is weighing on crude prices, squeezing all the money out of producers, some more than others, including a key group of competitors, US shale oil producers.

Apart from the 2.2 million barrels per day cut, which eight member countries began rolling back in April, OPEC+ has two other levels of output cuts that are expected to remain in place until the end of 2026.

All this is weighing on oil prices, including Brent crude. Technically, Brent prices are now in a descending channel and above its axis, which signals selling. 

The overall recommendation is to sell Brent oil.

Profits should be taken at the level of 63.0. A Stop loss could be set at the level of 66.0.

The volume of the opened position should be set in such a way that the value of a possible loss, fixed with the help of a protective Stop loss order, is no more than 1% of your deposit funds.