OPEC In FocusThe first OPEC+ meeting of 2022 gets underway today. The group will decide on how to set its production levels for the coming months. Oil prices have been on a solid topside run recently with prices rallying over 40% since the December lows. So far, OPEC+ has stuck to its plan of maintaining a gradual increase in production levels as it continues to unwind the production cuts put in place over the pandemic, due to be completed by September this year. Recently, several major political leaders have called on OPEC+ to speed up its production in a bid to contain surging energy prices. However, OPEC+ has since refused to bow to pressure.Looking ahead to the likely outcome of this meeting, Reuters is reporting sources from the group saying that production is unlikely to be stepped up. If this is the case, oil prices should remain well supported to the topside for now. However, much will depend on the group’s outlook. If production in unexpectedly increased, this might cause some near-term downside in oil prices.Technical ViewsCrude OilOil prices continue to grind higher within the bullish channel which has framed the rally off 2021 lows. While RSI remains bullish, there is heavy bearish divergence creeping in on MACD which needs to be monitored. The 90.85 level and bull channel top will be the next big test for bulls. To the downside, 83.75 is the key support level, a break of which would open the way for a test of 78.49 next.
Source: Tickmill
