The OPEC will try to reach an output deal in order to raise prices. The meeting has been rescheduled to 9 GMT from 10 GMT .
It is far from clear whether the Cartel will succeed. It was agreed in principle in September to restrict production, but now Saudi is asking other members… especially Iran and Iraq to accept deep production cuts. Iran isn’t ready to so do and neither is Iraq.
Stakes are high because OPEC’s credibility is at risk. This is the third time over the last one year that the Cartel is working to reach a deal. A successful deal could lead to a five dollar pop as said by Gaurav Sharma, Oil Analyst at IB Times on our Finance Show on Monday. On the other hand, failure to reach a deal could lead to a fresh sell-off to $42-40 levels.
On the we see a inside a larger sideways channel.
The was breached on Nov 1. An attempt to reenter the same failed on Nov 23.
The channel resistance is seen at 50.43, while on the lower side, breach of yesterday’s low of 45.90 would open doors for a test of sideways channel support around $43.87.