Crude Oil Price: Will the OPEC+ Meeting Yield a Move Past $62?
- Crude oil price is finding support from the better-than-expected figures from EIA on oil inventories.
- The Joint Technical Committee has lowered its forecast for oil demand by 300,000 bpd ahead of OPEC+ meeting.
- WTI and Brent futures are up by 059% and 0.76% but remain range-bound.
Crude oil price is range-bound for the second consecutive session. Investors are focused on the OPEC+ decision on oil production, following tomorrow’s meeting. Besides, EIA has released better-than-expected figures on US oil stockpiles. Brent futures are up by 0.59% at $64.52. Furthermore, WTI futures rose by0.76% to trade at $60.83.
US Crude Oil Inventories
Crude oil price is reacting to EIA’s data on the weekly oil stockpiles. According to the government agency, the amount of crude oil in storage dropped by 876,000 barrels in the past week. Analysts had expected a build of 107,000 barrels. Besides, gasoline inventories fell by 1.735 million barrels. The figure is better than the forecasted build of 730,000 barrels.
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Notably, the market’s reaction to these better-than-expected figures was rather subdued. This is because investors looking to trade oil are more focused on tomorrow’s OPEC+ meeting for a broader picture of crude oil price movements.
Investors’ focus on Thursday’s OPEC+ is largely behind the range-bound trading for crude oil price. On Wednesday, the Joint Technical Committee lowered its forecast for the growth of global oil demand. The adjustment comes as the world continues to struggle with the COVID-19 pandemic. According to the committee, which is the advisory team for OPEC+, the demand will increase by 5.6 million bpd in the current year. The figure represents a drop of 300,000 bpd from its prior forecast.
WTI Technical Outlook
$62 remain the resistance level to beat for WTI futures. Crude oil price has been trading below this point for two weeks. After trying to surpass $62 on Tuesday’s session, the price is back down to a narrower range. Over the past two days, the commodity is range bound between $60 and $61.24. As at 15.30 GMT, the benchmark for US oil was up by 0.76% to $60.83.
Crude oil price is likely to remain below $62 as investors await tomorrow’s OPEC+ meeting. If the bulls manage to push the prices higher, they will be testing the psychological level of $65. This outlook will be invalid if the bears are able to break the support level of $60 to the downside. If they succeed, the next target will be the prior low of $57.20.