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OPEC+ Sticks to Production Cut Plans

2/2/2023 12:45 PM

Benchmark Brent Crude Oil prices are correcting at 84.00.

The oil market has stabilized, and the meeting of OPEC+ energy ministers held yesterday in the format of a videoconference met traders' expectations: officials recommended cartel members maintain the earlier decisions to reduce production by 2.0M barrels per day. According to most experts, this course of action is fully in line with the current situation and contributes to the preservation of oil quotes within 80.0–90.0 dollars per barrel.

Data on stocks of raw materials in vaults in the US for the fifth week in a row signal an oversupply. So, yesterday, the American Petroleum Institute (API) reported an increase in the weekly rate of 6.330M barrels after an increase of 3.378M a week earlier, and a report by the Energy Information Administration of the US Department of Energy (EIA) reflected an increase in the value of 4.140M barrels after an increase of 0.533M earlier. The statistics are trying to provoke pressure on the quotes of the asset, but so far, there has been no reaction from investors to the published data. Also, as the International Energy Agency (IEA) reported in its recent report, attempts by the G7 countries to impose a price ceiling on Russian oil and thereby limit its supply on the market will not lead to serious consequences. According to the organization's director, Fatih Birol, if difficulties arise, they will not last longer than the first quarter of 2023.

On the daily chart, the trading instrument is moving within the local ascending corridor, coming close to the support line at 82.00.

Technical indicators increase the probability of growth: fast EMAs of the Alligator indicator are close to the signal line, and the AO histogram forms corrective bars in the buying zone.

Resistance levels: 85.50, 92.00. | Support levels: 80.64, 75.50.

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