Oil prices managed to pare losses on Friday. However, price remains near the 40.56 level.
We could expect volatility to rise as the OPEC+ leaders meet this week. The bias remains to the upside as a move above the 40.50 level will signal a continuation towards the 42.00 level.
There is a chance that oil prices could break free of this resistance level as well. This will then see crude oil challenging the next big level near the 45.00 handle.
To the downside, the risks are greater. The lower support is at the 38.00 handle.
A breakdown below this level could see oil prices sliding to the 34.41 level of support.