Reuters sources said that Russia may agree for other OPEC+ members to take its share of the quota but such a measure is likely to be phased in gradually. As such, the cartel is likely to stick to its current output increase policy at today’s meeting and not announce a major change to quotas. However, a signal may be sent that discussions over such measures are ongoing.
Taking a look at OIL chart at H1 interval, we can see that an overnight drop was halted at 200-hour moving average (purple line) and price recovered above price zone marked with 38.2% retracement of the upward move launched in the first half of May. This is an important price zone as, apart from the aforementioned moving average and retracement, the short-term upward trendline can be found in the area. In case bulls fail to hold the price above it and we see a downside breakout, a pullback may deepen towards the support zone in the $111.10 area, marked with 50% retracement and lower limit of a market geometry.