Oil sees some pressure ahead of the OPEC+ decision later today

Oil M1 06-12

Price quickly moved lower from $58.40 to $57.92 but is now settling back just above the $58 level as we wait on the official OPEC+ decision.

Saudi Arabia continues to try and paint things in a nicer light by saying that the decision will be "beautiful" and that the "market should trust us". They also add that the decision will come "without any loopholes".

In that sense, they are saying that they will somehow get members to fully comply with their quotas and achieve deeper output cuts. That is a bit hard to believe for now.

In any case, I have pointed out earlier that their current output cuts over the past few months have already consistently exceeded the target level and may even just account for the additional 500k bpd worth of cuts to be announced.

As such, once again, be wary that we could see a 'sell the fact' action at the end of the day and it sure looks like sellers are eager to jump the gun here.