OPEC On Watch
Oil traders will be paying close attention to today’s OPEC+ meeting. Following recent headlines around a potential production cut, OPEC sources have reportedly leaked that the group is said to be considering weighing up whether to keep current production quotas in place for October or cutting production slightly.
Last month we heard from Saudi Arabia, the group’s de-facto leader- that a production cut might well be necessary to stop oil prices plunging further, following the reversal from highs. However, OPEC ally Russia is said to be firmly against the move and is pushing for the current quotas to be rolled over for next month. If a cut is announced, this will no doubt help underpin prices in the near-term. However, given the broader demand fears, if a current quotas are extended this will likely weigh on oil prices near-term as markets continue to focus on the bigger macro backdrop.
Technical Views
Crude Oil
For now, crude prices continue to hold above the current 85.53 support, trading a range between that level and 95.93. Momentum studies are mostly flat, reflecting the loss of momentum recently. In terms of levels to watch, should we break lower the 79.21 level is the next big support area while to the topside, 103.80 is the next objective/hurdle for bulls.
Disclaimer: The material provided is for information purposes only and should not be considered as investment advice. The views, information, or opinions expressed in the text belong solely to the author, and not to the author’s employer, organization, committee or other group or individual or company.
Past performance is not indicative of future results.
High Risk Warning: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 75% and 75% of retail investor accounts lose money when trading CFDs with Tickmill UK Ltd and Tickmill Europe Ltd respectively. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Futures and Options: Trading futures and options on margin carries a high degree of risk and may result in losses exceeding your initial investment. These products are not suitable for all investors. Ensure you fully understand the risks and take appropriate care to manage your risk.
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.