Brent oil trades above 100-day MA as Russia reaffirms commitment to output cuts
- Brent oil is trading above the 100-day average for the first time in over a month.
- The upside is being capped likely due to comments by the US Energy Secretary.
Brent oil is currently lacking a clear directional bias, having closed above the 100-day moving average on Friday.
The black gold is trading above the long-term average for the first time since Sept.24. As of writing, a barrel of Brent is changing hands at $61.94 and the 100-day MA is located at $61.68.
Russia’s energy ministry said on Friday it is continuing close cooperation with the Organization of the Petroleum Exporting Countries (OPEC) and non-OPEC oil producers to enhance market stability and predictability, according to Reuters.
The alliance, known as OPEC+, entered into a deal in January to cut output by 1.2 million barrels per day (bpd) to support the market. The pact is scheduled to run till March 2020.
Russia's comments are likely helping Brent hold above the 100-day MA in Asia. Further, a statement from the United States and China that they are closing on a partial trade deal could be supporting prices.
The upside, however, is being capped likely due to comments by the US Energy Secretary that Global markets are awash in crude and the record US production looks set to continue.