Oil prices are now going down again as we are nearing the forthcoming OPEC summit. In particular, the January futures on Brent oil dropped down in value to $76,52/b. Market Leader reports. The experts are say that this is a 2,37% decline, which a pretty considerable intraday move.
In particular, oil prices are going down today since the OPEc is about to decide on the oil production volume. this means that the market is retracing on uncertainty in advance o the meeting. As for WTI oil, its price is going down as well. The price has already dropped by 1,87% and is currently staying around $72.72/b, Masterforex-V Academy reports.
The chart below, courtesy of Masterforex-V Academy confirms this information:
Many investors are afraid that the OPEC will dare avoid cutting oil production. If this is the case, there is going to be oversupply, which is bad news for oil exporters. The thing is that excessive supply extern downward pressure on oil prices worldwide.
In particular, some of the OPEC leaders previously gave the world to understand that they are not determined to cut oil production since Russia is unwilling to make the same step. Ti is interesting to note that Rosneft is not going to cut oil production even if oil prices drop down to $60/b.
With that said, it is better to abstain from trading until the situation clarifies today after the OPEC decision. Good trading!
