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Crude Oil Forecast: OPEC Postpones Output Decision

Crude Oil Forecast: OPEC Postpones Output Decision

The meeting of OPEC in Vienna failed to reach a final decision on cutting output.. 

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



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Crude Oil Forecast: Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these securities. You should do your own thorough research before making any investment decisions. Chartreaderpro does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Forex involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility.

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