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

copper

Copper set to end June with a 16-month low

The price of COMEX Copper futures is down 2.33% at 3.6925 per pound on mid-Thursday trades. Copper prices further declined on Thursday. This makes copper prices on track for the biggest quarterly percentage fall since March 2020. The potential of a recession occurring coupled with the decline in demand...

Read More
Chicago Wheat futures

Wheat approaches 4-month low, providing relief to inflation

The price of Chicago Wheat futures is up 1.90% at $9.6 per bushel on mid-Friday trades. Prices of wheat has fallen to 4-month low providing some relief to galloping inflation rates. Chicago wheat futures on Friday hit their lowest in nearly four months and headed to a second consecutive...

Read More

Leave a Reply