Crude oil prices are attempting to stage a corrective rebound on Monday after a dip to fresh two-month lows earlier in the day. Brent has extended the recent decline to $72,10 where it received a support and staged a recovery. However, the bullish momentum remains too timid to open the way to a more pronounced rise from the current levels, with the $74 area is the key upside hurdle at this stage.
Market participants continue to wonder how aggressively the OPEC+ countries will increase production, and whether the exporters will manage to come to a consensus at all, as the largest producers including Russia and Saudi Arabia call for a rise in output, while some other countries insist on keeping the current quotas unchanged, citing fears of oversupply and another plunge in prices.
Against this inconsistent backdrop, Brent will likely remain volatile in the coming days, expecting the cartel’s verdict. Amid a lack of consensus, the bearish risks prevail in the market, and we still could see fresh lows in the nearest future. Should the price challenge the $72 level, the next psychological target of $70 will get into the game.