Crude Oil Forecast: OPEC Postpones Output Decision
The OPEC meeting on Thursday failed to announce any output decision, as the oil producers delayed a decision to Friday following a discussion with Russia.
Russian Energy Minister Alexander Novak flew back to St Petersburg to meet with President Vladimir Putin, and he is expected to return to Vienna on Friday to discuss an output decision with OPEC for the next six months.
- Monitoring committee recommended a production cut
- OPEC agreed a cut will be forthcoming
- Russia went back home to check in with Big Daddy to see if it could play too
- Production cut quantity not specified
- Exempt members not named (Libya, Nigeria, Iran all asking for one)
- Oil prices still down as disappointed traders still skeptical
- Press conference that was supposed to take place after the meeting has been canceled, suggesting that whatever has been decided thus far (or not decided) is disappointing
On the other hand, U.S Side:
While U.S. President Donald Trump continues to call on OPEC to keep oil prices low, because “The World does not want to see, or need, higher oil prices!”, one corner of the world may need WTI prices higher than the current low $50s to keep pumping crude at the record pace it has been doing so far this year—the U.S. shale patch.
The recent price slide, by around 30 percent from four-year highs in early October, has brought down WTI Crude prices dangerously close to the wellhead breakeven prices in many U.S. shale areas.
The lower prices may lead to a slowdown in drilling activity and lower investments in the shale patch.
Looking at the matter technically:
49 $ remains as the psychological suppport. WTI Crude Oil is trading at 51.06 as of writing on the spot markets.
A Head and Shoulders pattern is being printed on the H4 Chart. The breakout of the neckline – 50.20 $ – may push the price deeper. 48.50 is the target of this formation.
Key Levels on the downside: 50, 49.22 and 48.50
On the upside: The prices needs to make a firm H4 closings above 51.60 to go up. 52.34 and 53.13 will be the levels we are focusing on.
We stay out of the game for a while. Look for a bearish or bullish breakout of above mentioned level to enter into the game
You can check our signal results
Subscribe to our services free of charge
Subscribe to our premium packages if you would like to get 1000+ instruments analysis and trade signals of Chartreadreadepro.