FXStreet reports that analysts at Charles Schwab note that crude oil futures prices continue to recover from the historic April lows as a combination of production cuts and signs of increasing demand appear to have stabilized the market in the near-term.

“On the production front, Saudi Arabia and other OPEC Plus members appear ready to continue their agreed upon 9.7 million barrels per day production cuts potentially past June, which was agreed to in the last OPEC meeting.”

“On the demand front, we note that several countries are beginning to ease some of the measures imposed and are allowing more businesses to reopen. This should help to grow energy demand modestly at first and help to curtail the current global glut of Crude Oil.”

“With prices now back above 30.00, we could see the market trade within a new price range from 30.00 up to 35.00, which we have seen last back in mid-April.”

“Major chart support is seen at the April 22 low of 20.28, with resistance seen at the March 9 high of 38.98.”

Oil: Brent to test major resistance – Credit Suisse

FXStreet reports that strategists at Credit Suisse note that commodity markets continue to improve strongly, with the Brent Crude Oil set to test its main resistance from the April highs.

“We look for a challenge on the Brent Crude Oil major resistance from the April highs at $36.00.” 

“With the 38.2% retracement of the entire Q1 collapse not far above at $37.28, our view has been for this to cap and define the top of what we think may be a significant long-term sideways range.” 

“Above $37.28 would be seen marking a significant break to the upside, potentially for broader risk assets as well, with resistance then seen next at the large price gap from March, starting at $39.70 and stretching up to $45.50.”