While Brent has managed to reach fresh post-pandemic highs last week and even tested $80 mark for the first time since October 2018, WTI continues to trade below highs from early-July 2021. Nevertheless, those highs can be found just around 2% above the current market price of WTI and given what’s scheduled for today, may be in danger in the later part of the day.
Representatives of OPEC+ countries will meet today via videoconference in the early afternoon (2:00 pm BST). Oil producers will discuss oil output increases. Namely, whether to continue with a plan agreed back in July that assumes increasing daily production by 400k barrels each month or whether to make a larger increase in production than that. Tighter oil market is an argument for bringing back more than 400k barrels of production and should OPEC+ decide to go this way, oil prices may take a hit. However, it should be noted that sticking to the previous agreement and rising daily production by 400k barrels remains the base case scenario.
OIL.WTI is trading slightly lower today but manages to stay above the $75 mark. Should we see a negative reaction to OPEC decision today, there are two nearby support levels to watch. The area marked with 78.6% retracement of the downward move launched in July is the first one ($73.75) while the lower limit of market geometry at $72.85 is the second one.
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