WTI crude oil regained ground as the OPEC confirmed that they have no plans of increasing production until the end of the year. Price bounced off its rising channel support and is testing the mid-channel area of interest.

A break past the resistance around $85 per barrel could set off a climb to the channel top at $88 per barrel or higher. The 100 SMA is above the 200 SMA to confirm that the path of least resistance is to the upside or that the uptrend is likely to carry on. The 100 SMA also held as dynamic support since it lined up with the channel bottom.

Stochastic is already indicating overbought conditions, though, and turning lower would mean that sellers are returning. This could spur another pullback to the channel bottom around $84 per barrel.

RSI has more room to climb, so buyers could stay in control for a bit longer before overbought conditions are met.

Crude oil is enjoying some support as the OPEC pumped 27.50 million barrels per day in October, which is higher by 190,000 bpd from the previous month but below the 254,000 increase permitted under the supply deal.

As it turned out, involuntary outages in some smaller producers offset higher supplies from Saudi Arabia and Iraq. Meanwhile, national oil firms in China have ramped up refinery run rates, which boosts its appetite for crude oil in order to avert a diesel shortage in the world’s second-largest oil consumer.

Upcoming inventory reports from the API and EIA would likely determine whether or not the commodity could sustain its climb throughout the week. A reduction in stockpiles could assure investors that demand remains supported, especially with more businesses resuming normal operations. A build, on the other hand, could reflect the recovery in production over the past week.