top of page

Will OPEC+ Meeting and Weaker Dollar Push Oil Prices Higher?

Oil Prices Climb as OPEC+ Meeting Looms and Dollar Softens.

WTI Crude Oil, Bar chart showing forex and commodities prices, green/red candles depict daily trading trends. Includes moving average, Bollinger bands, and RSI.

Rising Anticipation for OPEC+ Decisions

Oil markets have shown a resurgence, with prices ticking higher as the crucial OPEC+ meeting approaches.

The confluence of a weakening US dollar and the expectation of decisive action from OPEC+ is influencing the trend.

OPEC+ Meeting: A Turning Point?

As the Organisation of Petroleum Exporting Countries and its allies prepare to convene, the industry speculates on the possibility of extended supply curbs.

Analysts, like Warren Patterson from ING, believe key players such as Saudi Arabia and Russia may sustain current cuts into 2024.

Yet, there's less certainty on whether broader cuts are on the table.

Supply and Demand Dynamics

The market has recently grappled with robust supplies, causing a reduction in the war-risk premium and a swell in inventories, especially in the US. This has led to a marked decrease in bullish positions among hedge funds.

Oil trading with Vantage Markets , CFD broker

The US Dollar's Role

A weaker US dollar has given commodities priced in the greenback a lift, making them more appealing to global buyers.

This, paired with geopolitical tensions in the Middle East, adds complexity to market predictions.

Saudi Arabia's Strategic Balancing

Saudi Arabia faces the challenge of maintaining high oil prices without ceding too much market share.

According to Rystad Energy, this balancing act may necessitate a market share sacrifice until at least June 2024 to reach the IMF-estimated fiscal break-even price.

Analysts' Projections

Market experts predict potential rises in WTI prices, with deeper OPEC+ cuts possibly announced.

Conversely, a fall below a certain threshold could prompt actions like the US refilling its Strategic Petroleum Reserve, influencing market flows.

Additional Market Factors

With Russia lifting a ban on gasoline exports and US energy firms increasing rigs, supply considerations remain pivotal. Additionally, geopolitical negotiations in the Middle East could impact trade and pricing.

Leverage in Oil Trading

Trading oil CFDs with leverage allows speculation on oil prices without owning the asset. However, traders must be cautious as leverage amplifies both profits and losses.

sales banner for fpmarkets CFD broker

Intraday Forex Signal for WTI Crude Oil

Current Analysis:

  • Instrument: WTI Crude Oil

  • Pivot Point: 74.88

  • Volatility: Stable as indicated by Bollinger Bands.

  • Moving Average: Above the 20 SMA, signifying a bullish trend.

  • Ichimoku Cloud: Price near the cloud hints at a possible trend shift.

  • RSI: Just above 50, suggesting mild bullish momentum.

Trade Direction: BULLISH

Trade Probability: 65%

Yesterday's Trend: Upward movement signifies a shift towards bullishness.

Profit Targets:

  • 1st Resistance Level: 77.00

  • 2nd Resistance Level: 78.12

  • 3rd Resistance Level: 80.24

Stop Loss Guidelines:

  • Buy Trade: Stop loss at the 1st Support level, 73.76.

Trade Suggestion:

Consider buying WTI with a stop loss at 73.76, aiming for 77.00, followed by 78.12 and 80.24. Monitor the Ichimoku cloud closely for potential trend reversals.

Oil Prices

As with all investments, your capital is at risk. Investments can fall and rise and you

may get back less than you invested.

bottom of page