A rally in Brent crude, fueled by optimism that a global glut is shrinking, has lifted the benchmark above $70 a barrel. While the marker for more than half the world’s oil has rebounded since slumping to less than $30 in January 2016, it may encounter resistance while trying to move even higher. Futures are inching toward the 50 percent retracement line as per the Fibonacci sequence, a technical indicator. As prices have jumped, so has concern that some producers may be encouraged to boost output and undermine the effect of OPEC’s curbs.
Sources and photo-credits: Bloomberg