Brent crude oil and WTI Oil price waiting OPEC 2024 Annual supply reduction quota

Due to the approaching quota agreement, the OPEC meeting has been postponed to Thursday

Last Wednesday,After news of OPEC's decision to postpone the meeting to Thursday of this week, BrentCrude oil fluctuates particularly violently.Afterwards, sources pointed out that there are differences of opinion when discussing output levels for countries that often fail to meet existing output quotas, such as Angola and Nigeria.

The following figure highlights the difficulties faced by African countries in achieving their output targets due to a lack of infrastructure investment and capacity challenges.OPEC+It will be held on Thursday Greenwich Mean Time 13:00 Start meeting, the conspiracy group is currently weighing extending the production reduction deadline to 2024 The choice of the year, some reports even suggest that due to the weak oil price, more aggressive production cuts will be takenmeasure。OPEC must respond globallyincreaseThe negative impact of the slowdown is mainly due to the expectation of future demand decline and the pressure on oil prices caused by the increase in non OPEC supply (from the United States).

The four-day ceasefire between Israel and Hamas is generally positive, and negotiations to extend the ceasefire are still ongoing with the release of more hostages.OPEC has rejected Iran's request to impose an oil embargo on Israel, and the impact of this war on recent oil prices seems minimal.

Source:S&PGlobal and Platts Energy Information

Announced postponement on Wednesday 11 month OPEC The volatility intensified after the meeting, and Brent crude oil was tested 82 An important resistance zone near the US dollar.This area has been proven multiple times in the past to be a pivot point 82 USD level and 200 Daily Simple Moving Average (SMA) form.If we look at the downward trend starting from here, technically speaking, there is almost nothing that can stop the decline.Of course, if OPEC increases its production cuts, the oil market may rise as the market adapts to a world of reduced oil supply.

The resistance level is still 82 The US dollar, with slight support at 50% Fibonacci retreat 77 USD——50% The retracement position is usually not very important.Afterwards, support positions appeared all the way 71.50 USD.

Daily chart of Brent crude oil

Source:TradingView

WTI The price trend has also shown a similar trend - refusing to break through 200 SMAAnd in the OPEC Lower before the meeting.Before the bullish reversal on Wednesday, the commodity is expected to form a "twilight star" - usually in a bearish form.

Falling below 200 Moving averages and 77.40 After reaching an important level, the price trend continues to decline.The support position is 72.50 USD.

petroleum (WTI) Daily chart

Source:TradingView