G20: what did the leaders decide?
The G20 summit took place in Bali, Indonesia, on November 2022…
OPEC+ decision is in focus
Information is not investment advice
What happened?
Investors are waiting for the significant decision of OPEC+ members to prolong oil output cuts or stop them. Yesterday, they failed to come to a common conclusion. That pushed oil prices down below $45.00. However, the market euphoria over having a vaccine soon drove riskier assets upward as well as oil.
What’s next?
OPEC+ will meet the next time on Thursday to discuss the oil supply’s regulations. According to RBC Capital Markets, OPEC+ should agree on further cuts for about 3 months. On the one hand, the virus is still a severe problem, which has strong pressure on oil demand. On the other hand, the recent Chinese Manufacturing PMI report was better than expected and signaled the industry expansion. China is a huge oil importer, that’s why a recovery of the economic activity there will increase the oil demand, which should underpin oil prices in the end.
Technical tips
WTI oil is trading sideways from $44.65 to $45.65. If it manages to break the top of this range, the way up to the high of November 26 at $46.00 will be clear. On the flip side, the move below the support of $45.00 will drive crude oil to yesterday’s low of $44.65. However, it’s likely to pull back from $45.00 and turn to the upside to continue its zig-zag movement.
To trade WTI oil with FBS you need WTI-21F, which expires on December 18.
Similar
The End of Era: What Might the UK Face Next?
The deafening news shocked the whole world yesterday: the British Queen Elizabeth II died peacefully at the age of 96…
Why didn't oil prices calm despite OPEC+ attempts?
After months of pressure from the White House, Saudi Arabia relented and agreed with other OPEC+ members to increase production.
Popular
What Will Happen with the Euro? An Economic Perspective.
eurusd-is-falling-what-to-expect-from-the-future-price-movement
Will Australia's "Rampant Inflation" Prevail in May?
Greetings, fellow forex traders! Exciting news for those with an eye on the Australian market - the upcoming interest rate decision could be good news for Aussies looking to refinance or take out new loans. The Mortgage and Finance Association Australia CEO, Anja Pannek, has...
How Will BoJ Meeting Affect the Yen
Hold onto your hats, folks! The Japanese yen took a nosedive after the Bank of Japan (BOJ) left its ultra-loose policy settings unchanged, including its closely watched yield curve control (YCC) policy. But wait, there's more! The BOJ also removed its forward guidance, which had previously pledged to keep interest rates at current or lower levels. So, what's the scoop? Market expectations had been subdued going into the meeting, but some were still hoping for tweaks to the forward guidance to prepare for an eventual exit from the bank's massive stimulus
Choose your payment system
