Hello fellow traders. With the next OPEC+ meeting on Monday I expect a wild session with a huge oil movement.
Many countries are pushing OPEC+ to open taps and to increase immediately their production to avoid oil prices further skyrocketing. Current rumors are talking about doubling the output of 400kbpd to 800k.
Will this output be enough to cover the so-called market deficit? Price will tell us.
On the other hand, the constant US and Canada adding rigs and increasing output, together with some other OPEC+ countries cheating on their quotas, makes me think that a massive correction is round the corner.
But with OPEC+ we have to be very careful because after the losses of the pandemics I would not be surprised to see them squeezing the market a little bit more to reach 80-81 bucks per barrel (fibonacci extension 1.27). JP Morgan expects brent to end up the year close to 84.
Cheers.
Many countries are pushing OPEC+ to open taps and to increase immediately their production to avoid oil prices further skyrocketing. Current rumors are talking about doubling the output of 400kbpd to 800k.
Will this output be enough to cover the so-called market deficit? Price will tell us.
On the other hand, the constant US and Canada adding rigs and increasing output, together with some other OPEC+ countries cheating on their quotas, makes me think that a massive correction is round the corner.
But with OPEC+ we have to be very careful because after the losses of the pandemics I would not be surprised to see them squeezing the market a little bit more to reach 80-81 bucks per barrel (fibonacci extension 1.27). JP Morgan expects brent to end up the year close to 84.
Cheers.