Saturday, January 28, 2023
  • Submit news
  • Contact
  • DMCA
  • Cookie Privacy
  • Privacy Policy
  • Terms of Use
Oil Market News
  • Home
  • Marketdaily
  • Price
  • crudenow
  • Companies
  • politics
  • Gas
  • investing
  • Stock
  • OPEChot
  • brend
  • ships
Oil Market News
Home OPEC

OPEC+ Supply, U.S. Dollar and Economic Data in Focus

8 months ago
in OPEC
OPEC+ Supply, U.S. Dollar and Economic Data in Focus
Share on FacebookShare on Twitter

Latest Oil News

OPEC to Stay the Course on Oil Production Agreement; China’s Reopening Bullish for

OPEC to Stay the Course on Oil Production Agreement; China’s Reopening Bullish for

January 27, 2023
Biden vowed to punish Saudis over OPEC cut. That’s no longer the plan

Biden vowed to punish Saudis over OPEC cut. That’s no longer the plan

January 26, 2023
Oil Steadies as Traders Look to China, OPEC for Fresh Triggers

Oil Steadies as Traders Look to China, OPEC for Fresh Triggers

January 25, 2023
FG tasks 2023 OPEC’s President on attracting investments in oil

FG tasks 2023 OPEC’s President on attracting investments in oil

January 24, 2023


BRENT CRUDE OIL (LCOc1) TALKING POINTS

  • OPEC+ increases output target.
  • Attention shifts to key Chinese and U.S. data.

BRENT CRUDE OIL FUNDAMENTAL FORECAST: MIXED

Brent crude oil finished the week off strong post-NFP despite a stronger U.S. dollar. We saw OPEC+ agreeing to an increase of approximately 648Mbbls/d for July and August respectively which is a marked increase from the previously agreed upon 432Mbbls/d. Interestingly, the increase in supply included Russia despite reports of a potential exclusion due to sanctions on Russian oil.

Learn more about Crude Oil Trading Strategies and Tips in our newly revamped Commodities Module!

Typically, an increase in supply of this magnitude should ease crude oil prices but with OPEC+ member nations currently struggling with supply targets at a much reduced volume, the 648Mbbls/d looks like a stretch for many contributing nations. The graphic below from ING illustrates the shortfall leading up to the revised supply target. I do not see this trend changing over the next two months which should keep crude oil prices elevated.

Weekly Crude Oil Forecast: OPEC+ Supply, U.S. Dollar and Economic Data in Focus

Source: ING

U.S. inventories as reported by the Energy Information Administration (EIA) supplemented oil bulls after significant drawbacks in stockpiles allowing for a breach of the $115/barrel resistance level.

Another key factor to crude oil prices stems from the demand-side, and in particular the Chinese economy. Being the largest consumer of crude oil, the hindrance of COVID-19 has negatively impacted demand forecasts and consequently muted crude oil price increases.

ECONOMIC CALENDAR

Looking ahead to next week, the China theme kicks off the trading week with PMI data which has been on the decline since December 2021. Another print lower could weigh negatively on crude oil.

From the dollar perspective (historically inverse relationship with crude oil prices), U.S. inflation dominates the calendar with markets in anticipation of whether or not inflation is in fact declining for a second consecutive issue or not. Meanwhile, the dollar is already on the ascension after strong manufacturing PMI and labor data reinforces the hawkish narrative by the Federal Reserve.

Weekly Crude Oil Forecast: OPEC+ Supply, U.S. Dollar and Economic Data in FocusWeekly Crude Oil Forecast: OPEC+ Supply, U.S. Dollar and Economic Data in Focus

Source: DailyFX Economic Calendar

TECHNICAL ANALYSIS

BRENT CRUDE (LCOc1) WEEKLY CHART

Weekly Crude Oil Forecast: OPEC+ Supply, U.S. Dollar and Economic Data in Focus

Chart prepared by Warren Venketas, IG

The weekly brent crude candle looks to be closing above the psychological $150/barrel mark for the second week in a row which could cement the level as a definitive line in the sand.

BRENT CRUDE (LCOc1) DAILY CHART

Weekly Crude Oil Forecast: OPEC+ Supply, U.S. Dollar and Economic Data in Focus

Chart prepared by Warren Venketas, IG

Price action on the daily chart gives bulls hope for a retest of the recent swing high at $120.62 but caution should be exercised as fundamentals regarding the EU oil embargo on Russian oil and Russia’s potential retaliation remains uncertain.

Key resistance levels:

Key support levels:

  • $115.00
  • 20-day EMA (purple)
  • 50-day EMA (blue)

IG CLIENT SENTIMENT: BULLISH

IGCS shows retail traders are marginally NET SHORT onCrude Oil, with 63% of traders currently holding long positions (as of this writing). At DailyFX we typically take a contrarian view to crowd sentiment resulting in a short-term upside bias.

Contact and follow Warren on Twitter: @WVenketas





news.google.com

Tags: DatadollareconomicfocusOPECsupply
Previous Post

OPEC+ Supply, U.S. Dollar and Economic Data in Focus

Next Post

Savita Oil Tech board to mull stock split on 21st June

Related Posts

OPEC to Stay the Course on Oil Production Agreement; China’s Reopening Bullish for

OPEC to Stay the Course on Oil Production Agreement; China’s Reopening Bullish for

by Oil Market News
January 27, 2023
0

OPEC to Stay the Course on Oil Production Agreement; China's Reopening Bullish for Commodities, RBC Capital Markets Says Marketscreener.comOil Gains...

Biden vowed to punish Saudis over OPEC cut. That’s no longer the plan

Biden vowed to punish Saudis over OPEC cut. That’s no longer the plan

by Oil Market News
January 26, 2023
0

Comment on this storyCommentMonths after the White House vowed to punish Saudi Arabia for cutting oil output in defiance of...

Oil Steadies as Traders Look to China, OPEC for Fresh Triggers

Oil Steadies as Traders Look to China, OPEC for Fresh Triggers

by Oil Market News
January 25, 2023
0

Oil edged higher in a volatile session as technical market indicators signaled to traders that higher prices may be around...

FG tasks 2023 OPEC’s President on attracting investments in oil

FG tasks 2023 OPEC’s President on attracting investments in oil

by Oil Market News
January 24, 2023
0

“It is estimated that about 640 million Africans have no access to electricity” The Federal Government on Tuesday, tasked Equatorial...

Davos 2023: Big oil comes in from the cold on energy transition

Davos 2023: Big oil comes in from the cold on energy transition

by Oil Market News
January 23, 2023
0

Energy transition front and centre at Davos meetingEurope energy crisis forces moment of reckoningClimate activists sceptical of oil industry inclusionDAVOS,...

Will OPEC+ Cut Production In Early 2023?

Will OPEC+ Cut Production In Early 2023?

by Oil Market News
January 22, 2023
0

The OPEC narrative for 2022 was largely about the realities of supply and demand against the backdrop of a post-pandemic...

Next Post
Crude Oil Shielded From Bond and Stock Market Rout

Savita Oil Tech board to mull stock split on 21st June

Subscribe
Notify of
guest
guest
0 Comments
Inline Feedbacks
View all comments

Trend Oil News

Native Alaskan landowners demand reconciliation for U.S. government’s ANWR statements

Native Alaskan landowners demand reconciliation for U.S. government’s ANWR statements

9 months ago
Petrol prices climb to new records despite dip in oil prices

Petrol prices climb to new records despite dip in oil prices

7 months ago
Biden should change course from vilifying oil

Biden should change course from vilifying oil

7 months ago
Big Oil’s Tax Practices Are Under Fire As Profits Soar

Big Oil’s Tax Practices Are Under Fire As Profits Soar

2 months ago
What Is OPEC’s Net Oil Export Revenue?  | Rigzone

What Is OPEC’s Net Oil Export Revenue?  | Rigzone

5 months ago
ADVERTISEMENT
Bob Simpson’s TXO Energy goes public, soars 10% on first trading day

Bob Simpson’s TXO Energy goes public, soars 10% on first trading day

January 27, 2023

Internet of Things-as-a-Service to Enable Improved Opportunities

January 27, 2023

U.S. lawmakers ask Kerry to urge UAE to replace oil boss as COP28 president By

January 27, 2023

White House blasts Big Oil stock buybacks again as Chevron profits double

January 27, 2023

OPEC to Stay the Course on Oil Production Agreement; China’s Reopening Bullish for

January 27, 2023

Trinity To Spud Jacobin Well In Second Quarter Of 2023

January 27, 2023

Crude Oil

German Crude Oil Imports Rose 11% in 2022 As Crude Import Bill Doubles

German Crude Oil Imports Rose 11% in 2022 As Crude Import Bill Doubles

January 27, 2023
Europe Is Diversifying Its Diesel Sources Ahead Of Ban On Russian Fuel

Europe Is Diversifying Its Diesel Sources Ahead Of Ban On Russian Fuel

January 26, 2023
Opinion | Should the Strategic Petroleum Reserve Be Used Now?

Opinion | Should the Strategic Petroleum Reserve Be Used Now?

January 25, 2023
Rising Crude, Oil Products Inventories Weigh On Oil Prices

Rising Crude, Oil Products Inventories Weigh On Oil Prices

January 24, 2023

Investing

U.S. lawmakers ask Kerry to urge UAE to replace oil boss as COP28 president By

U.S. lawmakers ask Kerry to urge UAE to replace oil boss as COP28 president By

January 27, 2023
ESG Investing Fight Is Heating up in Kentucky and Could Cost Taxpayers

ESG Investing Fight Is Heating up in Kentucky and Could Cost Taxpayers

January 26, 2023
Chevron goes big with new $75 billion buyback, surpassing Exxon’s By Investing.com

Chevron goes big with new $75 billion buyback, surpassing Exxon’s By Investing.com

January 25, 2023
Oil falls $2/barrel on economic jitters, U.S. crude stock build By Reuters

Oil falls $2/barrel on economic jitters, U.S. crude stock build By Reuters

January 24, 2023

Market

Chevron profits slip as oil and gas prices fall

Chevron profits slip as oil and gas prices fall

January 27, 2023
Big Oil’s cash bonanza | Financial Times

Big Oil’s cash bonanza | Financial Times

January 26, 2023
NYC pension schemes test support for climate action at bank meetings

NYC pension schemes test support for climate action at bank meetings

January 25, 2023
Oilfield services groups cheer ‘structural upcycle’ after highly profitable year

Oilfield services groups cheer ‘structural upcycle’ after highly profitable year

January 24, 2023

OPEC

OPEC to Stay the Course on Oil Production Agreement; China’s Reopening Bullish for

OPEC to Stay the Course on Oil Production Agreement; China’s Reopening Bullish for

January 27, 2023
Biden vowed to punish Saudis over OPEC cut. That’s no longer the plan

Biden vowed to punish Saudis over OPEC cut. That’s no longer the plan

January 26, 2023
Oil Steadies as Traders Look to China, OPEC for Fresh Triggers

Oil Steadies as Traders Look to China, OPEC for Fresh Triggers

January 25, 2023
FG tasks 2023 OPEC’s President on attracting investments in oil

FG tasks 2023 OPEC’s President on attracting investments in oil

January 24, 2023
  • Submit news
  • Contact
  • DMCA
  • Cookie Privacy
  • Privacy Policy
  • Terms of Use

© 2022 OilMarket.News

No Result
View All Result
  • Home
  • Market
  • Price
  • crude
  • Companies
  • politics
  • Gas
  • investing
  • Stock
  • OPEC
  • brend
  • ships

© 2022 OilMarket.News

wpDiscuz
This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.