Oil a big winner on the day as Russia says that it would cut production in March

WTI crude Russia’s decision to voluntarily cut oil production by 500,000 barrels in March, and Novak said it would „facilitate the restoration of market relations.” He also adds that Russia may continue to act depending on the market situation, and it is said that Russia did not negotiate the decision with OPEC. In any case, the fact that Russia is acting on its own is a major blow to those hoping for some stability in the outlook for the oil market. One has to wonder what Saudi Arabia will say about this and whether OPEC members will be pleased. I guess, but you don’t want to risk Russia leaving and creating a tangent in the decision-making process of oil production. Looking at the chart, oil has largely stabilized between $70 and $80 over the past two months, and today’s latest rally brings the price closer to a retest of the 100-day moving average (red line). Stay low and the consolidation price action seems to continue, but break above and pass the short-term resistance around $82.50-$30 then we can start talking about a possible move to $90.

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