Things you need to know about Oil
Technical side of Oil:
After complete the double bottom setup, Oil continues to rally and reach the target of the pattern.
However, the rally shows a clear 5 waves Elliot circle, which signals an imminent correction following. Oil tops 40USD /barrel as of the time writing this post. Our target for wave 5 should be at least 41USD/ barrel.
Fundamental side of Oil:
Despite the stubbornness of Iran, the output of OPEC producers decreases 200,000 bpd this month. ( drop from 32.65 to 32.37 mbpd, which strongly supports the rally of Oil during the time)
Below are the productions number (mpbd) of each OPEC members: you can easily spot which countries accept to reduce their productions, which in
turn offsets the increase from Iran.
Russia also started to show some compromise as it reduces its output to 10.14 mbpd
Oil rig count in Us and Canada are at all time low:
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