CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 77% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 77% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

OIL slumps as OPEC+ deal details disappoint

16:20 30 November 2023

Oil prices have slumped over 4% since OPEC+ announced that it has reached an agreement on additional oil output cuts at a meeting today. While output cuts should be positive for prices, the announced size of the extra output cut (1 million bpd) was expected by the markets and hinted by media reports. However, details of the agreement turned out to be a massive disappointment. Namely, it seems that OPEC+ did not agree on output levels for individual countries and that member countries will announce size of output cuts themselves. On top of that, it was said that all the extra cuts will be voluntarily. This actually means that OPEC+ has failed to agree on anything definitive. Voluntary cuts can be reversed at any moment, do not require OPEC+ consent to be dropped, and the fact that they are voluntary means that they do not have to amount to 1 million barrels per day. It looks like today's announcement may have been made with a sole purpose of not giving more fuel to speculations on disagreements among OPEC+ member countries.

Taking a look at Brent chart (OIL) at H1 interval, we can see that prices went into freefall following OPEC+ announcement today, erased all of daily gains and are now attempting to break below the 200-hour moving average (purple line).

Start investing today or test a free demo

Open account Try demo Download mobile app Download mobile app

Source: xStation5

This content has been created by XTB S.A. This service is provided by XTB S.A., with its registered office in Warsaw, at Prosta 67, 00-838 Warsaw, Poland, entered in the register of entrepreneurs of the National Court Register (Krajowy Rejestr Sądowy) conducted by District Court for the Capital City of Warsaw, XII Commercial Division of the National Court Register under KRS number 0000217580, REGON number 015803782 and Tax Identification Number (NIP) 527-24-43-955, with the fully paid up share capital in the amount of PLN 5.869.181,75. XTB S.A. conducts brokerage activities on the basis of the license granted by Polish Securities and Exchange Commission on 8th November 2005 No. DDM-M-4021-57-1/2005 and is supervised by Polish Supervision Authority.

Back
Xtb logo

Join over 935 000 investors from around the world