With the OPEC+ meeting later this week, oil prices look more supported to start the new week after Friday’s rebound.
Last week’s outage threatened to make the technical picture even uglier, but bearish buyers came back to at least save the day at the weekly close. Now WTI Crude is at $111.40 – its highest level since June 17.
There are a few headlines that have been rocking the oil market lately:
- US EIA says no data available today on US stocks
- It looks like US oil inventory data will be delayed again this week
- Ecuador says its oil production could completely stop in 48 hours
- G7 close to U-turn on vow to end fossil fuel funding
- Macron heard at G7: Saudi Arabia and UAE have virtually no spare oil capacity
- The United Arab Emirates are trying to pretend they are at maximum reserve capacity
And all of this just adds to the narrative that OPEC+ will almost certainly maintain the status quo later in the week.
Perhaps the takeaway from the headlines is that the market remains rather tight and the worst-case scenario, or should I say extremely bullish scenario, is that Saudi Arabia and the UAE are really taken advantage of. The meaning of the word speaks differently to different people in the market, but if that’s the only thing they offer, it’s the only information market players can work with.
This article was written by Justin Low at www.forexlive.com.