Forex Analysis & Reviews: 12.12.2023 - Oil on the brink of change:...

Live Chat

InstaForex Loprais Team - Official participant of the Dakar rally

This section features the most important information about trading with InstaForex. We provide both analysis from leading experts for experienced traders and articles on trading conditions for beginners. Our services will help increase your profit potential.

Become Trader

Account Opening

See also

Trading Conditions

Forex Analytics

Charts

This section is designed for those who are just starting their trading journey. InstaForex educational and analytical materials will meet your training needs. Our experts' recommendations will make your first steps to trading success simple and clear.

Start as Beginner

How to start trading

Useful information

Training and recordings

InstaForex innovative services are an essential element of productive investment. We strive to provide our clients with advanced technical capabilities and make their trading routine comfortable as we are recognized as the best broker in this regard.

Become Investor

PAMM System

ForexCopy System

Passive investments

OYS account

Partnership with InstaForex is beneficial and top-tier. Join our affiliate programs and enjoy bonuses, partner rewards, and the possibility to travel with the team of the world-renowned brand.

Become Partner

Main Page

Partner Area

Advantages for Affiliates

Registration

This section contains the most lucrative offers from InstaForex. Receive bonuses when topping up an account, compete with other traders, and get real prizes even when trading in a demo account.

All Promo Campaigns

Bonuses

Contests

Events

Holidays with InstaForex are not only pleasant but also useful. We offer a one-stop portal, numerous forums, and corporate blogs, where traders can exchange experiences and become successfully integrated into the Forex community.

Full details

Forums

We are in social networks

Forex humour

Forex Portal

InstaForex is an international brand created in 2007. The company provides services for online FX trading and is recognized as one of the world's leading brokers. We have won the trust of more than 7,000,000 retail traders, who have already appreciated our reliability and focus on innovations.

Learn More

History

Why Choose Us

InstaSport

Regulation

Company News

Awards

InstaForex Stars

InstaForex Offline

Headquarters

Key documents

Social Responsibility

InstaForex - Official partner of Dragon Racing

12.12.2023 05:51 AM

Oil on the brink of change: how the rate decision and OPEC+ are game changers

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.

You have already liked this post today

*Disclaimer: The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade.