This week started with the talk of the United States banning Russian oil exports, so XBR/USD saw $130 a barrel. Then the ban became reality. What does it really mean for the market?
How is the global oil demand doing?
What will happen?
OPEC-JMMC is holding a meeting on April 28 all day long.
That’s one of the key meetings of the oil cartel as the previous one surprisingly revealed their plans to gradually start increasing the supply. However, OPEC+ members had agreed to meet at the end of April to review the situation and check if the global oil demand dynamics are indeed following the previous projections. If the forecasts prove to be correct and the oil supply increase plans are confirmed, that may serve as an indication that the cartel is optimistic about the current oil market dynamics. Otherwise, if the outlook doesn’t encourage optimism, OPEC+ may revise its plan for the oil supply boost.
How to trade the OPEC’s meeting?
If the OPEC+ reveals no change to its oil supply plans, it’ll be a positive sign of the global oil demand recovery. In this case, the oil price will likely stay around the same level it’s been trading at lately. A revision of the plan will likely push the price upwards as it would mean that the cartel is planning to hold the increase in the supply quantities.
- If the OPEC+ doesn’t change the oil supply plan, the oil price will stay stable;
- If the OPEC+ revises the plan to hold the supply increase, the oil price may rise.
Instruments to trade: WTI oil; Brent oil
Organization of the Petroleum Exporting Countries (OPEC) is scheduled to meet on January 4.
What will happen? Crude oil inventories will be announced at 17:30 MT (GMT+3) on Wednesday, September 29…
The Australian Bureau of Statistics will announce the updated Unemployment Rate and Employment Change data on Thursday, May 19, at 04:30 MT.
The UK Office for National Statistics will publish Consumer Price Index (CPI) data on Wednesday, May 18, at 09:00 MT.
The US Census Bureau will announce Core Retail Sales and Retail Sales on Tuesday, May 17 at 15:30 MT.