USOIL Slides after OPEC+ Delays Meeting

  • USOil
    (${instrument.percentChange}%)

USOIL Analysis

The commodity had managed to stage a rebound over the past few days, helped by soft US inflation figures, robust economic data from China and Beijing's signals for additional support to the beleaguered property sector. However, the upside looks unfriendly for USOil, with multiple hurdles, starting from the EMA200 (close to 90). The recent rise unravels today though, after OPEC+ postponed its upcoming meeting [1]. USOil is now in risk of new monthly lows (72.23), although sustained weakness that would threaten the 2023 lows (63.63) looks like a toll order.

The conference was scheduled for the weekend, but the organization pushed it back for Thursday 30 November. This is not a good sign for prospects of more output curbs, as it may be an indication of disagreements amongst members around production. OPEC and its allies have implemented massive supply cuts, but there seems to be some dissatisfaction in regards to the contribution of some members. The policy has failed to support prices recently, which have been falling after September peak, so participants may need to further restrict supply. The International Energy Agency (IEA) warned last week that the market "could shift into surplus at the start of 2024". [2]

Nikos Tzabouras

Senior Financial Editorial Writer

Nikos Tzabouras is a graduate of the Department of International & European Economic Studies at the Athens University of Economics and Business. He has a long time presence at FXCM, as he joined the company in 2011. He has served from multiple positions, but specializes in financial market analysis and commentary.

With his educational background in international relations, he emphasizes not only on Technical Analysis but also in Fundamental Analysis and Geopolitics – which have been having increasing impact on financial markets. He has longtime experience in market analysis and as a host of educational trading courses via online and in-person sessions and conferences.

References

1

Retrieved 22 Nov 2023 https://www.opec.org/opec_web/en/press_room/7260.htm

2

Retrieved 14 Jun 2024 https://www.iea.org/reports/oil-market-report-november-2023

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