Crude Oil Lower Before HigherOPEC+ LEAVES JANUARY OUTPUT PLANS UNCHANGED BUT REMAINS FLEXIBLE TO OMICRON-RELATED SHOCKS
Yesterday the Organization of Petroleum Exporting Countries (OPEC), Russia and its allies, known as ‘OPEC+’, decided to stick to its original plan to increase oil supply by 400,000 barrels per day (bpd) despite the ongoing threat of Omicron on travel restrictions and the coordinated release of special petroleum reserves (SPR) by the US and others.
As a result, oil prices dropped sharply as the news filtered through to the markets with oil trading down 4% at one stage and trading well below $66. The sharp drop has appeared to be overdone as crude oil recovered to end the day in the green.
OPEC’s decision has been welcomed by the US after countless calls for the group to alleviate rising energy costs in light of rising inflation among developed nations. However, OPEC + remains flexible to the unknown effects of the Omicron variant as far as it relates to travel restrictions and ultimately the demand for oil, by keeping the meeting “in session”, allowing any
changes in the lead up to January 2022.
At the time of writing, the USOIL price stands at $68.750, Based on our forecasts a long-term price decrease is expected to be around -18.00%.
- Our option for #USOIL is TO KEEP WATCHING & WAIT FOR THE SELL-OFF MONTHLY CHART CONFIRMATION.
It’s important to keep in mind that cryptocurrency markets are extremely volatile, making it difficult to accurately predict what a coin’s price will be in a few hours or a few days and even harder to give long-term estimates. As such, analysts and online forecasting sites can get their predictions wrong. We recommend that you always do your own research and consider the latest market trends, news, technical and fundamental analysis , and expert opinion before making any investment decisions. Be patient and look long term wisely and never invest more than you can afford to lose.
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