Oil prices are rallying today as speculators are looking forward to another OPEC report and IEA forecast.
The current market situation looks as follows:
· The January futures contract on Brent Crude Oil is up by $0,67 - $108,68/b.
· The January futures contract on WTI oil is up by $0,46 - $86,25/b.
The OPEC is expected to maintain oil production quotas at 30 million barrels a day.
At the same time, the International Energy Agency expects the global demand for crude oil to boost by 435K barrels a day up to 90.5 million barrels a day in Q4 2012 (m/m). The forecast may be revised in the near future.
The chart below, courtesy of , reflects the current state of affairs in the market of WTI:
The price has probably finished wave C or 3 and is currently consolidating within the scope of wave 4. If the supposition is right, we will see the price going for wave 5. If this is the case, the closest major level of support is 84,02. Alternatively, the price will keep consolidating to start a mid-term rally.
