WTI Oil clings on to 1% gains as OPEC+ meeting enters next phase
Oil prices are printing again a 1% profit in a very volatile morning this Thursday as the OPEC+ meeting is taking place. Split division still stands as Angola and Nigeria are refusing to take any production cuts, both for different reasons. With the first part concluded around 12:30 GMT, the next phase of the meeting is due to take place with the OPEC+ Joint Ministerial Monitoring Committee to resume at 13:30 GMT.
The US Dollar (USD) meanwhile is trying to set the record straight as markets might have devalued the Greenback a touch too much. While focussing on the end of the hiking cycle for the US Federal Reserve, markets got caught by surprise of a sudden substantial decline in the Eurozone in both its growth and inflation. At this pace, the Eurozone might even fall back into deflation by next year, which means quicker cuts, and thus again a widening rate differential which in its turn would favour a stronger US Dollar. Crude Oil (WTI) trades at $78.48 per barrel and Brent Oil trades at $83.49 per barrel at the time of writing. Oil prices will have a very eventful day as headlines emerge throughout the day on either a deal or no-deal on production quotas for all OPEC+ members. Commodity Traders will have their work cut out. Although an outcome is hard to predict, some deal will certainly get done as the current lacklustre demand side is likely to be countered by some production cuts, borne by at least sum or most OPEC+ members in order to create price stability.
On the upside, $80.00 is the resistance to watch out for. Should crude be able to jump above that again, look for $84.00 (purple line) as the next level to see some selling pressure or profit taking. Should Oil prices be able to consolidate above there, the topside for this fall near $93.00 could come back into play. On the downside, traders are seeing a soft floor forming near $74.00. This level is acting as the last line of defence before entering $70.00 and lower. Watch out for $67.00 with that triple bottom from June as the next support level to trade at.
On the upside, $80.00 is the resistance to watch out for. Should crude be able to jump above that again, look for $84.00 (purple line) as the next level to see some selling pressure or profit taking. Should Oil prices be able to consolidate above there, the topside for this fall near $93.00 could come back into play. On the downside, traders are seeing a soft floor forming near $74.00. This level is acting as the last line of defence before entering $70.00 and lower. Watch out for $67.00 with that triple bottom from June as the next support level to trade at.