OPEC Meetings Continue Today
The OPEC+ meetings continue today following last week’s failure to find strike a deal which resulted in the talks being postponed. The group of OPEC producers, along with group of non-OPEC producer-nations led by Russia, is meeting to determine whether to ease production restrictions further, and by how much. The market is currently forecasts restrictions to be eased by a further 550k barrels per day. However, the dispute so far has been over the fact that UAE producer nations are calling for a steeper level of easing given that they have increased their production capacity over the course of the pandemic.
What To Watch For
If the group is able to strike a deal today, it will likely have limited impact on markets unless the restrictions are eased at a higher level than expected. If the group gives in to demand from the UAE and steps up the level of production significantly, this will likely fuel some downside in oil. However, if the group fails to find a compromise today and is unable to strike a deal, that will mean the current production levels remain in place, which will likely keep oil prices supported in the near term.
Technical Views
Crude Oil
The rally in crude oil prices over the last week has seen price breaking out above the 74.46 level. With MACD and RSI both bullish, the focus is on further upside here with 76.78 the next upside objective for bulls. Should we see any dip below the 74.46 level, 69.53 is the next downside support to note.
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With 10 years of experience as a private trader and professional market analyst under his belt, James has carved out an impressive industry reputation. Able to both dissect and explain the key fundamental developments in the market, he communicates their importance and relevance in a succinct and straight forward manner.