Oil prices fell sharply on Wednesday (September 7th), slipping below levels seen before Russia's invasion of Ukraine as dismal Chinese trade data and growing fears of a global economic recession hurt fuel demand.
West Texas Intermediate (WTI) oil futures for October delivery plunged US$4.94 or 5.7 percent. With lower prices this time it is a good opportunity to supply companies that are optimistic about surviving the recession and tightening monetary policy.
This week, OPEC+ is scheduled to discuss oil production cuts as part of their future strategy. OPEC+ revised the market balance this year and expects demand to lag supply by 400,000 barrels per day (bpd) compared to the previous estimate of 900,000 bpd. However, the group of major oil producers expects the oil market to be in deficit by 300,000 bpd by 2023.
@kosai19, You're welcome mr. Kosai, I'm more thankful to you who have supported me from the beginning of joining this forum. :D
kosai19
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@DNP-FX, Yeah, no problem...you keep getting better. Best of luck in your trading
Yelli_trades
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nice entry, congrats!
DNP-FX
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@DemoDiaryFX_Trading, Thanks! happy weekend
Journeyman124
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300k deficit? Not much room fir error there. Global demand very tricky equation. So tight they lowered prices ? I don’t think so . They have to compete with all the black market oil from Iran and Russia which apparently seems to be flowing quite freely.
DNP-FX
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@Journeyman124, That's basically what they concluded from the opec meeting about future plans and the 300k bpd deficit expectation by 2023. I can't conclude predictively how supply will flow in the future. but being reactive to the latest news about what market participants are talking about, it would be better.