The Brent crude is hovering below the landmark $70 a barrel. OPEC’s output reduction and US sanctions on Iran and Venezuela have keep oil from sliding back into a bear market. While tight supply made the price dearer, investors are betting on sustained demand from major economies. President Trump stated that the US and China may reach an agreement in the coming month, which holds oil buyers optimistic that a major thorn on the global economy could be removed soon.
On the technical side, the crude has met stiff selling pressure at 70. An extended rally could push the price towards 72. 69.25 is the immediate support in the short-term.
The sentiment-price correlation chart shows the sentiment falling from its peak, which suggests an potential pullback or consolidation before the next move.