WTI Crude oil futures continue to soared today as equities stay well supported and oil traders focus on a further extension of global supply curbs. The Organization of the Petroleum Exporting Countries and their allies, including Russia, also known as OPEC+, has been cutting production by about 7.7 million barrels per day to support prices. The cartel is set to hold a ministerial committee meeting on Tuesday which could recommend further changes to production quotas. WTI Crude is managing to hold above $40 per barrel and currently trades up 0.50% at $41.55 per barrel.
Oil prices edged higher on Tuesday on expectations OPEC and its allies will extend oil production cuts for at least three months, while sentiment was bolstered by news of another promising coronavirus vaccine. Equity markets rose on hopes of a quicker economic recovery after Moderna Inc said its experimental COVID-19 vaccine was 94.5% effective in preventing infection based on interim late-state data. OPEC+, which groups the Organization of the Petroleum Exporting Countries (OPEC) and its allies, including Russia, is set to hold a ministerial committee meeting on Tuesday that could recommend changes to production quotas when all the ministers meet on Nov. 30 and Dec. 1. The group is leaning towards postponement of a planned January increase in oil output for at least three months to support prices as the COVID-19 pandemic continues its second wave, sources told Reuters on Monday. China’s crude oil throughput in October rose to its highest-ever level, underpinning a fast demand recovery in the world’s second largest oil consumer.
TREND : WEAK BULLISH
Time : 17/11/2020
Pivot : 41.44
Technical View : LONG ABOVE 41.64
Target : 41.84, 42.39, 42.93, 43.73
Technical View : SHORT BELOW 41.24
Target : 41.01, 40.65, 39.95, 39.91