US Crude Oil CFD: Bullish outlook remains

US Crude Oil CFD soared 24% in November as the Media reported that OPEC would discuss the delay of oil output increase in January.

Energy 2

US Crude Oil CFD soared 24% in November as the Media reported that OPEC would discuss the delay of oil output increase in January. Finally, OPEC+ members agreed to increase oil production by 0.5 million barrels per day in January and gradually ease output cuts. Currently, the focus of oil prices returned to the demand recovery and the cases of COVID-19. Investors should focus on the U.S. Energy Information Administration (EIA)'s oil stockpile data and its short-term Energy Outlook report.

From a technical point of view, US Crude Oil CFD is holding on the upside after breaking above the declining channel. Currently, it is trading above both rising 20-day and 50-day moving averages. The relative strength index locates at 60s, suggesting the upside momentum for the prices. The bullish readers could set the support level at 4025, while resistance levels would be located 4930 and 5440.



Source: GAIN Capital

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