WTI oil is gaining almost 2.5%, while Brent oil is gaining more than 2.0% during today's session. The upward move in the first half of the day was probably caused by the weakness of the dollar, while in the afternoon the price moved higher following the publication of oil production data by OPEC +. At the beginning of the month, Bloomberg and Reuters released their estimates of crude oil production. It turns out that OPEC production in August increased (the first month of the new agreement), but less than 400,000 barrels for the day. This is due to the fact that some countries have a problem with resuming production, while in other countries production is decreasing!
The increase in production in August amounted to 290 thousand barrels per day, while the main producers expected an increase to 400 thousand barrels for the day. Saudi Arabia increased production by 200,000, while Iraq increased by 110,000. In turn, production is falling in Angola, Nigeria and Russia! On the other hand, Russia reports that this is only a temporary fluctuation in production and the country intends to hit pre-pandemic levels in May next year.
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Angola and Nigeria produce much less than agreed. Source: Bloomberg
Crude oil price broke above the downward trendline and the 38.2 retracement of the last upward wave. This is an important signal for buyers, although one should take into account the potential volatility of the dollar during tomorrow's NFP release. Source: xStation5
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