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.
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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
