Oil in anticipation of OPEC meeting
WTI oil strengthened in price to the resistance of $ 61.5 per barrel.
In the European session, markets declined on the news of the removal of a container ship, which previously blocked traffic in the Suez Canal, on one of the busiest sea trade routes in the world. In the future, traders paid attention to the upcoming meetings within the framework of OPEC+. The next meeting of the alliance's ministerial monitoring committee is scheduled for March 31, and the ministers themselves for April 1. They should decide on the level of production for May. At the same time, analysts believe that OPEC+ will not increase production amid the recent decline in prices.
The Suez accident was a short-term price support factor. Now the trend for a general decline in energy prices may resume, the cost of a barrel of oil within one or two sessions may well fall to 58-60 dollars (USD). On the news of the blocking of the Suez Canal, oil quotes last week added 6% and exceeded the level of $ 64. But the next day, prices fell sharply by more than 4%, as the main issue for the market remains the global balance of supply and demand. Amid the spread of the coronavirus in Europe and some Asian countries, including India — the largest energy market — traders are more concerned about low demand than supply disruptions due to a short-term traffic stop on Suez.
In my trading forecast, I assume a decline in the price of WTI oil to the level of $ 60.75 per barrel.