Don’t waste your time – keep track of how NFP affects the US dollar!

Data collection notice

FBS maintains a record of your data to run this website. By pressing the “Accept” button, you agree to our Privacy policy.

Follow us on Facebook

Beginner Forex book

Beginner Forex book will guide you through the world of trading.

Email tooltip

Thank you!

We've emailed a special link to your e-mail.
Click the link to confirm your address and get Beginner Forex book for free.

FBS Mobile Personal Area

FREE - In Google Play

View
OPEC may increase oil supply at meeting on March 4

OPEC may increase oil supply at meeting on March 4

Information is not investment advice

What will happen?

OPEC will hold a meeting on March 4, where it should announce its decision on further oil output. Since oil prices have rebounded recently, OPEC members may start slowly increasing the crude production. Oil prices returned to the pre-pandemic levels and settled at fresh 13-month highs.

What to look for?

Saudi Arabia and Russia have opposite views about the oil market. While Saudi Arabia’s side urge to be “extremely cautious,” despite prices rebounding, Russia signals its intentions to raise oil output.

These days, OPEC members are withholding 7 million barrels a day from the market, about 7% of worldwide production. For such countries as Iraq and Nigeria, it's a real sacrifice as it causes economic problems as exports drop. However, it helped to boost oil prices to the current levels.  

Investors should focus on two crucial decisions. Firstly, OPEC members have to decide whether to increase output by as much as 500 000 barrels a day or not. They have already discussed it in December, but rejected this idea at the January meeting. Secondly, Saudi Arabia claimed it might cut 1 million barrels a day in any case on a voluntary bias in February and March. The final decision will be made at the meeting.

According to Rystad Energy AS, “the elephant in the room is Saudi Arabia’s gift of 1 million barrels a day in extra cuts. If the gift is snatched back, prices cannot do else but decline.”

How will it impact oil prices?

Brent oil is getting closer to the key psychological mark of $70.00. It’s unlikely to break it on the first try, but if OPEC prolongs output cuts, Brent oil may rally up above this resistance to the high of May 2019 at $73.00. In the opposite scenario, the increase of oil output will press oil prices down. If Brent drops below the recent low of $62.00, it may fall further to the 200-weekly moving average at $59.00.

Notice that to trade Brent oil with FBS, a trader need BRN-21K.

Brent_OilWeekly.png

LOG IN

Similar

WTI oil: too much for bulls?

Oil plunged several percent on Thursday. They say, the bullish rally was just too aggressive. Let's trade the dip then!

Popular

Choose your payment system

Learn more

Callback

Please fill in the form below so we can contact you

Select the best time for us to call you. We give calls from Monday to Friday in suggested intervals. In case we couldn't get through, we will try again at the same time the next day. For getting real-time assistance, use FBS chat.

We provide only English-speaking callbacks. If you prefer any other languages, contact the support team.

We will call you at the time interval that you chose

Change number

Your request is accepted.

We will call you at the time interval that you chose

Next callback request for this phone number will be available in 00:30:00

If you have an urgent issue please contact us via
Live chat

Internal error. Please try again later