What will happen to the oil price if no agreement can be reached❔
Oil prices continue to rise today, with Brent and WTI gaining around 0.30%. Attention remains focused on the OPEC + meeting, where an agreement to gradually increase production has still not been reached. According to news agencies, differences of opinion between Saudi Arabia and the UAE make it impossible to reach an agreement - some reports even suggest that the talks will be postponed again. Currently we are dealing with three possible scenarios:
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compromise on a gradual increase in production (probable production increase by 400k bpd in August) - which may potentially lead to further but gradual increases in oil prices
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no compromise (i.e. no increase in production in August) and postponement of talks - which could potentially lead to a higher increase in oil prices due to dynamically growing demand and insufficient supply
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a lack of agreement and a greater conflict within the cartel,that could even lead to its breakdown, which could create the risk of "flooding" the market with oil supply "- in such a scenario, the price of" black gold "could decline.
WTI crude oil prices remain in an uptrend. Last week break above the resistance at 74.20 occured, but the upward movement slowed down. The aforementioned zone should now be treated as a key support. In line with the classic assumptions of technical analysis, as long as the price sits above it, the upward move should continue. Source: xStation5
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