empty
12.12.2023 05:51 AM
Oil on the brink of change: how the rate decision and OPEC+ are game changers

This image is no longer relevant

February futures for Brent crude were stable at $76.03 per barrel, while January futures for American West Texas Intermediate crude rose by 3 cents to $71.35 per barrel.

Both contracts had seen a slight increase on Monday: Brent went up by 19 cents to $76.03 per barrel, and WTI by 9 cents to $71.32.

OPEC+ promised to cut production by 2.2 million barrels per day in the first quarter of 2024, but investors remain doubtful that this will decrease overall supply due to expected production increases in non-OPEC countries.

ANZ Research analysts noted the continued rise in U.S. shale oil production and unexpectedly high output from other non-OPEC producers.

Brent crude prices fell from over $80 per barrel in early December, and WTI from over $77 per barrel.

Both Brent and WTI are in a contango market structure, indicating that futures contracts for the first few months of 2024 are priced lower than later contracts. This suggests investor expectations of lower demand or sufficient supply of crude oil during these periods.

"The oil market is closely monitoring the new reports from OPEC and the International Energy Agency, as well as the negotiations at COP28," the statement read.

At the COP28 summit, measures to reduce greenhouse gas emissions were discussed, but a phased-out fossil fuel reduction, demanded by many countries, was not mentioned, drawing criticism from the USA, EU, and climate-vulnerable countries.

More than 100 countries aimed for an agreement that would signify the end of the oil era, but faced resistance from OPEC members.

In addition to the COP28 negotiations, the market is also paying attention to this week's key central banks' interest rate policies and U.S. inflation data.

The U.S. Consumer Price Index (CPI) report is due on Tuesday, with the Federal Open Market Committee's (FOMC) two-day meeting on monetary policy concluding on Wednesday.

Decisions on interest rates are also expected from the European Central Bank (ECB) on Wednesday and the Bank of England (BoE) on Thursday.

January's demand for Saudi crude oil from Chinese refineries, the world's largest oil importer, hit a five-month low, as unexpectedly high prices led buyers to seek cheaper supplies elsewhere.

Saudi Arabia competes with Russia as the largest oil supplier to China.

Thomas Frank,
Analytical expert of InstaForex
© 2007-2025
Select timeframe
5
min
15
min
30
min
1
hour
4
hours
1
day
1
week
Earn on cryptocurrency rate changes with InstaForex
Download MetaTrader 4 and open your first trade
  • Grand Choice
    Contest by
    InstaForex
    InstaForex always strives to help you
    fulfill your biggest dreams.
    JOIN CONTEST

Recommended Stories

US Market News Digest for June 27

Major US stock indices ended the week with solid gains. The Dow Jones and Nasdaq each rose by 1%, while the S&P 500 climbed by 0.8%. Broad investor participation points

Ekaterina Kiseleva 12:56 2025-06-27 UTC+2

Nike lifts Adidas, Puma, JD Sports: The report that changed the day

Indices rise: Dow 0.94%, S&P 500 0.80%, Nasdaq 0.97% Bank stocks rise as Fed proposes to ease leverage rules Nike results lift Adidas, Puma, JD Sports Knorr Bremse falls

Thomas Frank 12:24 2025-06-27 UTC+2

US Market News Digest for June 26

Trump pushes S&P 500 toward record highs Donald Trump is fueling gains in the S&P 500, driving the index toward all-time highs amid political stability and market optimism. However, analysts

Ekaterina Kiseleva 13:07 2025-06-26 UTC+2

Markets are shaky: some are falling, others are flying — what's happening with Tesla, FedEx and Micron stocks

Tesla falls as European sales continue to slump FedEx, General Mills shares fall after disappointing profit forecasts Micron Technology jumps in extended trading after quarterly results Indices: Dow down 0.25%

Thomas Frank 09:38 2025-06-26 UTC+2

Markets Delighted by Fed Inaction: Nasdaq 100 at All-Time High

Indices Rise: Dow 1.19%, S&P 500 1.11%, Nasdaq 1.43% Nasdaq 100 Hits Record Closing High Fed Chair Powell Reiterates 'Wait and See' Approach to Rate Cuts, Tariffs Broadcom Hits Record

Thomas Frank 15:16 2025-06-25 UTC+2

US Market News Digest for June 25

AI enthusiasm fuels market gains US stocks continue their steady climb despite persistent geopolitical risks and trade tensions. The Nasdaq 100 hit a new record high amid strong demand

Ekaterina Kiseleva 12:38 2025-06-25 UTC+2

Iran-Israel peace hint rattles markets: What's happening to oil, gold and currencies

Crude oil prices slip, retreating from multi-month highs after Iran retaliates Wall Street stocks close higher, European shares fall Dollar rises against yen, falls against franc; euro recovers European stocks

Thomas Frank 14:00 2025-06-24 UTC+2

US Market News Digest for June 24

The S&P 500 and other benchmark indices have kicked off the new trading week with positive momentum, supported by technical indicators. The uptick follows a strong signal from the Marlin

Ekaterina Kiseleva 12:59 2025-06-24 UTC+2

Iran attacks exacerbate oil crisis: S&P 500 freezes ahead of key US data

US attacks on Iran raise concerns about oil, retaliation S&P 500 near February highs but showing signs of stagnation Rising oil prices raise concerns about inflation, Fed policy Investors look

Thomas Frank 12:44 2025-06-23 UTC+2

US Market News Digest for June 23

Geopolitical tensions weigh on markets Investors remain cautious amid escalating Middle East tensions, awaiting potential Iranian retaliation. While market reactions have been muted so far, further conflict escalation could trigger

Ekaterina Kiseleva 12:31 2025-06-23 UTC+2
Can't speak right now?
Ask your question in the chat.
Widget callback
 

Dear visitor,

Your IP address shows that you are currently located in the USA. If you are a resident of the United States, you are prohibited from using the services of InstaFintech Group including online trading, online transfers, deposit/withdrawal of funds, etc.

If you think you are seeing this message by mistake and your location is not the US, kindly proceed to the website. Otherwise, you must leave the website in order to comply with government restrictions.

Why does your IP address show your location as the USA?

  • - you are using a VPN provided by a hosting company based in the United States;
  • - your IP does not have proper WHOIS records;
  • - an error occurred in the WHOIS geolocation database.

Please confirm whether you are a US resident or not by clicking the relevant button below. If you choose the wrong option, being a US resident, you will not be able to open an account with InstaForex anyway.

We are sorry for any inconvenience caused by this message.