Oil stays barely supported just above $50
Market expectations as we move towards a decision later are rather low with Saudi yesterday claiming that there could be no consensus of a production cut and if there was one, they’re working towards a 1 million bpd cut only. That is the bare minimum in terms of what markets were expecting when we started the week.
Right now, price continues to stay supported just above the $50 handle with yesterday’s low touching $50.08 and the daily close coming above the 76.4 retracement level once again. The OPEC+ meeting is set to be the key focus of market participants in European trading, with one eye being kept on the US non-farm payrolls to come later in the day.
At this point, only a surprise whereby OPEC+ announces production cuts of 1.3 to 1.4 million bpd will be able to provide some relief for oil prices in my view. Russia is proving to be a tough one to tackle as they join in on negotiations today, so let’s see how things play out.