Oil: OPEC upscaling the supply

Oil: OPEC upscaling the supply

2021-04-05 • Updated

Fundamental

OPEC+ meeting last week was concluded with the following results:

  1. The cartel gradually increased the oil supply by 1mln bpd over the course of the three months ahead;
  2. Saudi Arabia is putting back to supply its 1mln bpd that it previously voluntarily cut.

The decision was rather unexpected. While some of the cartel’s members (Russia) were known for pushing to roll back oil supply, most of the other members were believed to follow a conservative and cautious course of Saudi Arabia. The latter advised it’s time to “test” the market and review results on April 28 when the next meeting is scheduled.

However, while the OPEC’s decision was a result of inner compromise rather than a true belief in the confident demand recovery, observers are not pessimistic on the latter. Therefore, the upside is still a possible projection area for the oil price.

Technical

Currently, WTI oil is fluctuating around $60. After it reached $68 at the beginning of March, it never came back. Moreover, it lost more than $10 of value dropping to $57 later on. Since then, higher lows have been forming suggesting that the downward correction may be over. As the technical pattern of the triangle indicates, sideways movement may extend through the middle of April until bulls come back to take over and break the resistance of $62.

WTI_OilH4.png

                                                                                           LOG IN

Oil: OPEC upscaling the supply

Similar

Latest news

Coca-Cola: time for new all-time highs?
Coca-Cola: time for new all-time highs?

Coca-Cola reports its quarterly earnings for the first quarter of 2021 on April 19, 12:30 MT time. What will be the possible impact on the stock price?

Stocks that benefit from chip shortage
Stocks that benefit from chip shortage

Stocks of tech and auto sectors are in the focus of traders these days due to the global chip shortage. Let’s find out what is going on with chips and why it’s important for traders.

Deposit with your local payment systems

Learn more

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.

Callback

A manager will call you shortly.

Change number

Your request is accepted.

A manager will call you shortly.

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

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

Beginner Forex book

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

Beginner Forex book

The most important things to start trading
Enter your e-mail, and we will send you a free Beginner Forex book

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.

You are using an older version of your browser.

Update it to the latest version or try another one for a safer, more comfortable and productive trading experience.

Safari Chrome Firefox Opera