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

What could tip USD: NFP, Fed moves, or Big Beautiful Bill?

Wall Street keeps churning out record after record. On Wednesday, the S&P 500 , driven by IT giants, once again set a fresh all-time high. The catalyst was not only

Svetlana Radchenko 13:17 2025-07-03 UTC+2

US Market News Digest for July 3

The S&P 500 index once again reached an all-time high thanks to sustained demand for technology stocks and a positive reaction to the US-Vietnam trade agreement on tariffs. Investors

Ekaterina Kiseleva 12:58 2025-07-03 UTC+2

Stocks Ride: Nasdaq Jumps, S&P Rises, Dow Falls — There's More Behind It

Nasdaq Closes 0.94%; S&P 500 Up 0.47%; Dow Down 0.02% Centene Falls After Cutting 2025 Outlook Tesla Rises, Rebounds From Early Week Losses Wall Street Futures Up 0.1%, Nikkei Flat

Thomas Frank 10:28 2025-07-03 UTC+2

US Market News Digest for July 2

The S&P 500 index declined by 0.11%, the Nasdaq 100 lost 0.82%, while the Dow Jones rose by 0.91%. Investors are awaiting the release of macroeconomic data that could influence

Ekaterina Kiseleva 12:32 2025-07-02 UTC+2

Tesla falls, European stocks rise

Tesla Shares Fall as Musk-Trump Feud Renews Powell Doesn't Rule Out July Rate Cut Mixed Signals in US Manufacturing Labor and Contracts European Stocks Rise on Wednesday, Led by Industrial

Thomas Frank 10:56 2025-07-02 UTC+2

Stock Market Rises Higher: What's Pushing Dow, Nasdaq, S&P Higher

Bank Stocks Rise After Fed Stress Test Tesla Shares Fall Gold Rises as Oil Prices Fall on OPEC+ Output Expectations Zealand Pharma Gains After BNP Opens Coverage with 'Outperformance' InPost

Thomas Frank 12:11 2025-07-01 UTC+2

US Market News Digest for July 1

Monday's trading ended in positive territory: the S&P 500 rose by 0.52%, while the Nasdaq 100 added 0.47%. The start of the second half of the year unfolded amid optimistic

Ekaterina Kiseleva 11:43 2025-07-01 UTC+2

What could Bitcoin encounter in July? Market grimaces

The second month of summer is traditionally considered a favorable period for Bitcoin. It's quite possible that the pattern will repeat this year, and BTC may begin its ascent toward

Larisa Kolesnikova 10:58 2025-07-01 UTC+2

US Market News Digest for June 30

US equity markets closed higher: the S&P 500 and Nasdaq 100 both gained 0.52%, while the Dow Jones rose by 1.00%. Investors welcomed progress in trade negotiations, which

Ekaterina Kiseleva 11:15 2025-06-30 UTC+2

Hedge funds sell energy at record pace - what are they afraid of?

Hedge funds sold energy stocks last week at the fastest pace since September 2024 and the second fastest in 10 years as oil prices fell on easing tensions

Thomas Frank 11:14 2025-06-30 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.