Oil continues to trade within the upward channel.
Forex forecasts and market outlooks
High-quality Forex forecasts and financial market reviews from professional analysts are added daily!
Clients of the Tifia broker get exclusive access to high-quality materials from independent analytical agency Claws&Horns in their Client Cabinet: technical and fundamental market analysis, Forex economic event calendar, currency, stock, index and cryptocurrency forecasts, trading indicators signals and much more.
In the middle of last week, data on crude oil inventories were published, which unexpectedly showed a decrease of –4.856M against –1.734M expected. The data reversed the long-term trend of increasing stocks and gave a positive impetus to the instrument. Also, the spread in the arbitration position of WTI Crude Oil and Brent again returned to the average values of the year around $6, which indicates the completion of the global operation and the start of a new one.
Today, during the Asian session, oil prices moderately fall, retreating from yesterday's local highs at 64.62. The price is supported moderately by expectations of positive changes after a two-day OPEC meeting, which will end on December 6. The cartel suggests recommending reduce in oil production by an additional 500K barrels per day in 2020 Q1.
For a month and a half, WTI crude oil continues to be traded within a wide ascending channel. The price shows either a rapid increase or an equally rapid decline. However, the overall trend remains upward amid falling demand for the dollar and rising demand for energy. Additional support is provided by the extension of OPEC+ agreements on the reduction of oil production.
Oil quotes are falling, as traders are focused on today’s data on energy reserves. The indicator is projected to decrease by –1.798M against the increase by 1.572M last week, which is unlikely, as the index has been growing for the eighth week in a row. The next meeting of OPEC, scheduled for Thursday, will affect the instrument, too.