{"id":15742,"date":"2024-11-12T03:10:56","date_gmt":"2024-11-12T03:10:56","guid":{"rendered":"https:\/\/www.vtmarkets.com\/?p=15742"},"modified":"2024-11-12T03:10:56","modified_gmt":"2024-11-12T03:10:56","slug":"oil-steady-as-traders-await-opec-report","status":"publish","type":"post","link":"https:\/\/www.global-vtrader.com\/en\/analysis\/oil-steady-as-traders-await-opec-report\/","title":{"rendered":"Oil Steady as Traders Await OPEC Report"},"content":{"rendered":"\n<p class=\"has-medium-font-size\"><strong>Key points:<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Oil prices steady as traders await OPEC&#8217;s monthly report for future price guidance.<\/li>\n\n\n\n<li>Strengthening U.S. dollar pressures oil prices by raising costs for non-dollar buyers.<\/li>\n<\/ul>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity is-style-dots\" \/>\n\n\n\n<p>Oil prices were largely unchanged in early trading on Tuesday, with Brent crude futures sitting at $71.82 a barrel, down 1 cent, and U.S. West Texas Intermediate (WTI) at $68.07, up 3 cents by 0158 GMT.<\/p>\n\n\n\n<p>The chart for CL-OIL-ECN shows a clear downtrend, with the price closing at 67.913 and continuing to slide from recent highs around 70.284.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large is-resized\"><img decoding=\"async\" src=\"https:\/\/www.vtmarkets.com\/wp-content\/uploads\/2024\/11\/image-24-1024x449.jpeg\" alt=\"\" class=\"wp-image-15743\" style=\"width:1450px;height:auto\" \/><\/figure>\n\n\n\n<p class=\"has-text-align-center\"><em>Picture: Crude oil under pressure as downtrend continues; key support at 67.85 in focus amidst demand concerns, as seen on the <a href=\"https:\/\/vtmarketsapp.onelink.me\/CD7D\/240525WA\" title=\"\">VT Markets app<\/a>.<\/em><\/p>\n\n\n\n<p>The immediate support level appears around 67.850, which aligns with recent lows. Should this level fail to hold, it could open up further downside towards the next support near 67.00.<\/p>\n\n\n\n<p>The price would need to breach the 68.40 mark on the resistance side to signal any potential recovery or relief in selling pressure.<\/p>\n\n\n\n<p>This stability follows a turbulent two-day period where both contracts fell over 5%, driven by mounting oversupply concerns and tempered hopes for growth from China\u2019s recent 10 trillion yuan ($1.40 trillion) debt package.<\/p>\n\n\n\n<p>Market participants were left unimpressed by China&#8217;s stimulus effort, which analysts feel lacks the scale needed to boost growth meaningfully.<\/p>\n\n\n\n<figure class=\"wp-block-embed is-provider-twitter wp-block-embed-twitter\"><div class=\"wp-block-embed__wrapper\">\n<blockquote class=\"twitter-tweet\" data-width=\"500\" data-dnt=\"true\"><p lang=\"en\" dir=\"ltr\">China&#39;s measures left investors yearning for more stimulus. The list of winners and losers of the US election is becoming clearer: Here\u2019s your Evening Briefing. <a href=\"https:\/\/t.co\/GHV9DuUZAP\">https:\/\/t.co\/GHV9DuUZAP<\/a><\/p>&mdash; Bloomberg (@business) <a href=\"https:\/\/twitter.com\/business\/status\/1855899370874675345?ref_src=twsrc%5Etfw\">November 11, 2024<\/a><\/blockquote><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script>\n<\/div><\/figure>\n\n\n\n<p>Traders are now eyeing the Organization of Petroleum Exporting Countries (OPEC) monthly report due out later today.<\/p>\n\n\n\n<p>The market will be particularly focused on any adjustments in <strong><a href=\"https:\/\/t.co\/HRqMjB0qOs\">OPEC\u2019s demand forecast<\/a><\/strong>, especially through 2025. If the report signals further downward revisions in demand, it could add additional pressure on prices as the oversupply narrative strengthens.<\/p>\n\n\n\n<p>The physical oil market also appears better supplied in the near term. Analysts at ING noted a recent shift in <strong><a href=\"https:\/\/t.co\/1XFXjHfQYw\">prompt time spreads<\/a><\/strong> for Brent and WTI towards contango, a condition where prompt contracts are priced lower than future contracts.<\/p>\n\n\n\n<p>This contango structure typically suggests that immediate supply is outpacing demand, a factor likely to keep near-term price gains limited.<\/p>\n\n\n\n<p>Further adding to the headwinds for oil, the U.S. dollar has gained strength, closing higher on Monday as markets braced for upcoming U.S. inflation data and <strong><a href=\"https:\/\/t.co\/eyUTz6ZumW\">Federal Reserve commentary<\/a><\/strong>.<\/p>\n\n\n\n<p>A stronger dollar makes dollar-denominated commodities like oil more costly for holders of other currencies, dampening demand and weighing on prices.<\/p>\n\n\n\n<p><strong>See also: <a href=\"https:\/\/www.vtmarkets.com\/market_analysis\/week-ahead-market-digests-trump-trade-policies\/\">Week Ahead: Market Digests Trump Trade Policies<\/a><\/strong><\/p>\n\n\n\n<p>This contango structure typically suggests that immediate supply is outpacing demand, a factor likely to keep near-term price gains limited.<\/p>\n\n\n\n<p>Further adding to the headwinds for oil, the U.S. dollar has gained strength, closing higher on Monday as markets braced for upcoming U.S. inflation data and <strong><a href=\"https:\/\/t.co\/eyUTz6ZumW\">Federal Reserve commentary<\/a><\/strong>.<\/p>\n\n\n\n<p>A stronger dollar makes dollar-denominated commodities like oil more costly for holders of other currencies, dampening demand and weighing on prices.<\/p>\n\n\n\n<p><strong>Start trading now \u2014 click\u00a0<a href=\"https:\/\/www.vtmarkets.com\/trade-now\/?utm_campaign=account_c&amp;utm_source=dma&amp;utm_medium=website\">here<\/a>\u00a0to create your live VT Markets account.<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Oil holds steady as traders await OPEC&#8217;s upcoming monthly report for guidance, following oversupply concerns and China\u2019s underwhelming stimulus. &#8211; vtmarkets.com<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[27],"tags":[44,34],"class_list":["post-15742","post","type-post","status-publish","format-standard","hentry","category-analysis","tag-commodities","tag-oil"],"acf":[],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.global-vtrader.com\/en\/wp-json\/wp\/v2\/posts\/15742","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.global-vtrader.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.global-vtrader.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.global-vtrader.com\/en\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.global-vtrader.com\/en\/wp-json\/wp\/v2\/comments?post=15742"}],"version-history":[{"count":0,"href":"https:\/\/www.global-vtrader.com\/en\/wp-json\/wp\/v2\/posts\/15742\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.global-vtrader.com\/en\/wp-json\/wp\/v2\/media?parent=15742"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.global-vtrader.com\/en\/wp-json\/wp\/v2\/categories?post=15742"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.global-vtrader.com\/en\/wp-json\/wp\/v2\/tags?post=15742"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}