Oil prices steady ahead of OPEC+ meeting

Brent Oil  was trading 0.70% Up at  $79.53.

Oil prices were largely steady on Tuesday as investors expected major producers to agree to stick to their planned output increase at their meeting later in the day amid diminishing concerns over the spread of the Omicron variant of COVID-19.

Brent Crude was up 22 cents, or 0.3%, at $79.20 a barrel at 0939 GMT, while U.S. West Texas Intermediate (WTI) crude rose by 21 cents, or 0.3%, to $76.29 a barrel.

OPEC+ is expected to increase oil output for February as the group assesses only a short-lived impact on demand from the Omicron.

OPEC+, which groups producers from the Organization of the Petroleum Exporting Countries (OPEC) with others including Russia, has raised its output target each month since August by 400,000 barrels per day

RBC Capital Markets analysts said OPEC+ was unlikely to change course given the current price outlook, pressure from the administration of U.S. President Joe Biden to boost supply and no major new COVID-19 mobility curbs.

“Though Omicron cases continue to climb in key geographies, the absence of widespread lockdown restrictions will likely keep near-term demand concerns in check,” RBC analysts said in a note.

Britain’s vaccine minister said people being hospitalised with COVID-19 in the United Kingdom were broadly showing less severe symptoms than before.

French Finance Minister Bruno Le Maire said although the surge of the fast-spreading Omicron variant was disrupting some sectors, there was no risk of it “paralysing” the economy, and stuck to a forecast of 4% growth for France’s GDP in 2022.

Factory activity also rose in Asia last month, suggesting the direct hit from the variant on output appeared subdued.

However, analysts warned that OPEC+ may have to change tack if tension between the West and Russia over Ukraine flares up and hits fuel supplies, or Iran’s nuclear talks with major powers make progress, which would lead to an end to oil sanctions on Iran.

RSI Stood at 58.311, the current price is trading Above All the Moving Averages    . So, a  Buy trade can be executed with the following target and stop-loss:

TRADE SIGNAL-Brent OilBuy: 78.70, TARGET:-84.70, STOP LOSS:- 75.70.

About Author

Related posts

crude futures

Oil falls as looming U.S. rate hikes spook investors

Brent Oil was trading 0.11% down at  $88.63. Oil prices fell on Thursday as the U.S. dollar strengthened following signs that the Federal Reserve will tighten monetary policy soon in the world’s biggest oil user. Futures pulled back amid a broader decline in financial markets after the Fed telegraphed a...

Read More
Brent Crude

Oil prices rebound as growing political tensions fuel supply fears

Brent Oil was trading 0.72% up at  $87.48. Oil rose towards $89 a barrel on Wednesday, within sight of a seven-year high, supported by tight supply and geopolitical tensions in Europe and the Middle East that raise concerns about further disruption. U.S. President Joe Biden said on Tuesday he would...

Read More
Crude oil futures

Oil prices rebound as growing political tensions fuel supply fears

Brent Oil was trading 0.84%up at $86.18. Oil expenses bounced again on Tuesday, convalescing a number of the preceding day’s losses, as developing anxiety in Eastern Europe and the Middle East fuelled issues over feasible deliver disruptions in an already tight market. Brent crude futures rose $1.21, or 1.five%,...

Read More

Leave a Reply