Oil pares losses on talk of OPEC+ meeting being set for next Monday

Technical Analysis

Author: Justin Low | oil

Oil gets a lift on the day as OPEC+ sets a date to talk

Oil 03-04
WTI briefly climbed above $25 and is keeping near the level currently as oil pares losses of over 4% earlier to just 1.5% currently.

The current talk in the market is that OPEC+ is going to be holding a virtual meeting next Monday but I'd be mindful of that. This is arguably the first step to restart communications and we may not necessarily see output cuts being delivered on the day itself.

Meanwhile, it is said that Trump will also be meeting with oil executives at 1900 GMT so just take note of that in case we do hear of anything more from him today.

For now, oil is once again seeing reason to track higher but skepticism remains.

The news flow is definitely helping with the short squeeze but I would argue that this is going to end up in disappointment for oil bulls if they are expecting all of this shenanigans to result in a sustained move back towards $30 - well, for now at least.

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