Crude oil prices brushed aside a weak demand outlook as per the reports from the latest projections from OPEC. Oil prices are trading about 2% higher intraday.
A strong close above the 42 level could strengthen the upside bias. This is also seen from the Stochastics oscillator that could signal the move to the upside.
The next key resistance level is near the 45.22 level. This gains prominence as oil prices fell below zero after giving up this level.
Therefore, we could see prices struggling one again to breakout above this region.
This could mean that the 45 – 42 region might become the next corridor for oil prices to consolidate in.