The Brent Oil has increased today and has erased the yesterday’s losses, could climb even higher till the end of the day as the fundamental factors will take the lead. Price is trying to recover after the last week’s impressive sell-off, has found strong support and now could climb much higher ahead of the OPEC meeting from May 25.

Technically the rate remains under pressure and could drop anytime again, but now could increase further as the United States Crude Oil Inventories have come in worse than expected, the Crude Levels were reported at -5.2 million barrels in the previous week, much below the -2.0M estimate and versus the -0.9M in the previous reporting period. We could have some volatility in the upcoming day, any rumors could shake the price. As you already know, the OPEC members will meet again in May 25 to decide what will happen with the oil production, the Organization has announced that will cut the production further after June 2017, but there are voices that said that another cut is unlikely at this moment. The Oil will increase significantly if the OPEC will sign another deal.

Price has increased and has climbed much above the 50% retracement level, now is very close to hit the red uptrend line, where he could find resistance again. The current rebound is natural after the failure to reach the second warning line (wl2) and after the failure to stabilize below the median line (ml) of the minor descending pitchfork. The perspective is bearish as long as the rate is trading within the minor descending pitchfork’s body, so the minor rebound could be temporary if the OPEC will fail to sign another deal. Technically, we could have a selling opportunity if the rate will come and will test the confluence area formed at the intersection between the uptrend line with the upper median line (uml) of the minor descending pitchfork, we have a major downside target at the 38.2% retracement level and at the 50% Fibonacci line (ascending dotted line).