- The OPEC+ is to consider whether to deepen oil output cuts at next meeting on November 26.
- The existing curbs don't seem to be enough
- OPEC considering additional oil supply cuts due to a nearly 20% price drop since late September.
- Concerns about future demand and potential surplus despite OPEC+ cuts and Middle East conflicts.
- OPEC+ pledged total oil output cuts of 5.16 million bpd, 5% of daily global demand, starting in late 2022.
- Some sources suggest current cuts may not be enough, deeper cuts might be discussed.
- Market volatility rising ahead of Nov. 26 OPEC+ meeting.
- OPEC's monthly report cites strong oil market fundamentals despite the price drop.
- International Energy Agency predicts lower 2024 demand growth and potential market surplus in Q1.
- Debate among OPEC members on whether more cuts are needed; some say it's too early to decide.
- OPEC does not have an oil price target; members heavily rely on oil revenue.
- Saudi Arabia's extended oil cuts raise concerns about economic contraction.
- Saudi Arabia emphasizes the need for strong compliance with production cuts among all members.
- In June, OPEC+ agreed to limit supply into 2024, with Saudi Arabia extending its voluntary production cut until the end of 2023.
- Some analysts expect Saudi Arabia to maintain the voluntary cut through at least Q1 2024.
The price of WTI crude oil is trading up $2.20 at $75.75.
Mom Tthe price still remains below its 200-day moving average at $78.13. It's 100 day moving average is up at $82.29. Getting above those moving averages as needed to increase a bullish bias.