With Brent that trades around $49,43bbl, Oil has recovered 50% of the disadvantage accumulated during the first days of November, and it seems that the commodity wants to go back to the October highs, driven by expectations of an OPEC deal.
The price has been fueled by a renewed push of the members of the Organization of the Petroleum Exporting Countries which have expressed a willingness to work together to reach a common agreement on the output level during the crucial meeting next week.
The positive momentum is fueled also by the Russian president Putin, who recently said that an agreement could be done during late November.
The continuous news coming from OPEC will for sure favor certain movements of the Oil price during today’s session, while later today the API report on the Oil inventory will lead the investors view.
Looking at the chart from a technical point of view, a beak of the significant resistance @ $49,85 (61,8% Fibo level) would expose the Brent price to a rise to $50bbl. On the opposite side, in case the price would break the support @ $49,00 i expect a drop until the $47,77 level (100-DMA).