OPEC + plans largest production cuts since the beginning of the pandemic
WTI crude futures surged more than 5% on Monday amid increasing speculation that OPEC+ was considering cutting production of up to 1 million barrels per day at a meeting on October 5, excluding any voluntary cuts by individual members.This would mean that countries which are not using their full production capabilities would have to reduce production even more in line with the new targets. Earlier information appeared in the media that the cut would amount to 0.5-1.0 million bpd. It is also worth mentioning that before the giant cut during the pandemic, OPEC usually lowered production by 1-2 million bpd.
WTI oil is gaining almost 5% today and is breaking above the local highs from late September, which could negate the structure of the lower lows and highs. Nearest target for bulls is located around $ 85 per barrel, where the upper limit of the 1:1 can be found.
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