While Brent has managed to reach fresh post-pandemic highs last week and even tested $80 mark for the first time since October 2018, WTI continues to trade below highs from early-July 2021. Nevertheless, those highs can be found just around 2% above the current market price of WTI and given what's scheduled for today, may be in danger in the later part of the day.
Representatives of OPEC+ countries will meet today via videoconference in the early afternoon (2:00 pm BST). Oil producers will discuss oil output increases. Namely, whether to continue with a plan agreed back in July that assumes increasing daily production by 400k barrels each month or whether to make a larger increase in production than that. Tighter oil market is an argument for bringing back more than 400k barrels of production and should OPEC+ decide to go this way, oil prices may take a hit. However, it should be noted that sticking to the previous agreement and rising daily production by 400k barrels remains the base case scenario.
Start investing today or test a free demo
Create account Try a demo Download mobile app Download mobile appOIL.WTI is trading slightly lower today but manages to stay above the $75 mark. Should we see a negative reaction to OPEC decision today, there are two nearby support levels to watch. The area marked with 78.6% retracement of the downward move launched in July is the first one ($73.75) while the lower limit of market geometry at $72.85 is the second one.
Source: xStation5
The content of this report has been created by XTB S.A., with its registered office in Warsaw, at Prosta 67, 00-838 Warsaw, Poland, (KRS number 0000217580) and supervised by Polish Supervision Authority ( No. DDM-M-4021-57-1/2005). This material is a marketing communication within the meaning of Art. 24 (3) of Directive 2014/65/EU of the European Parliament and of the Council of 15 May 2014 on markets in financial instruments and amending Directive 2002/92/EC and Directive 2011/61/EU (MiFID II). Marketing communication is not an investment recommendation or information recommending or suggesting an investment strategy within the meaning of Regulation (EU) No 596/2014 of the European Parliament and of the Council of 16 April 2014 on market abuse (market abuse regulation) and repealing Directive 2003/6/EC of the European Parliament and of the Council and Commission Directives 2003/124/EC, 2003/125/EC and 2004/72/EC and Commission Delegated Regulation (EU) 2016/958 of 9 March 2016 supplementing Regulation (EU) No 596/2014 of the European Parliament and of the Council with regard to regulatory technical standards for the technical arrangements for objective presentation of investment recommendations or other information recommending or suggesting an investment strategy and for disclosure of particular interests or indications of conflicts of interest or any other advice, including in the area of investment advisory, within the meaning of the Trading in Financial Instruments Act of 29 July 2005 (i.e. Journal of Laws 2019, item 875, as amended). The marketing communication is prepared with the highest diligence, objectivity, presents the facts known to the author on the date of preparation and is devoid of any evaluation elements. The marketing communication is prepared without considering the client’s needs, his individual financial situation and does not present any investment strategy in any way. The marketing communication does not constitute an offer of sale, offering, subscription, invitation to purchase, advertisement or promotion of any financial instruments. XTB S.A. is not liable for any client’s actions or omissions, in particular for the acquisition or disposal of financial instruments, undertaken on the basis of the information contained in this marketing communication. In the event that the marketing communication contains any information about any results regarding the financial instruments indicated therein, these do not constitute any guarantee or forecast regarding the future results.
