Brent oil ticks up on prospects of production cut

Oil prices are trading higher in Asia on prospects the major OPEC and non-OPEC producers may cut production in September to stabilize prices.

At the time of writing, Brent was up 35 cents or 0.75% at $47.30/barrel. Prices rallied on Friday en though the Baker Huges data saw the largest jump in the American natural gas and oil rig count this year. The combined count stood 17 rigs higher than the same count last week, bringing the domestic figure to 481 rigs.

Oil traders did take note of the bearish data, but remained focused on the possibility of a production cut announcement in September. Meanwhile, dollar weakness post dismal advance US retail sales release also helped oil strengthen.

Brent oil Technicals

A violation at the immediate resistance of 47.54 (July 21 high) would open doors for a major hurdle of 48.03 (July 15 high). On the lower side, a break below 46.75 (23.6% of 27.08-52.83) could yield a move lower to 45.84 (5-DMA).