简体中文
繁體中文
English
Pусский
日本語
ภาษาไทย
Tiếng Việt
Bahasa Indonesia
Español
हिन्दी
Filippiiniläinen
Français
Deutsch
Português
Türkçe
한국어
العربية
Abstract:Traders worry that OPEC will decide to further cut its production at the next meeting in December.
OPEC reduced its demand growth forecast by 0.1 million bpd.
Coronavirus cases in China continue to rise.
WTI oil declined below the $86 level.
Today, OPEC released its Monthly Oil Market Report, which indicated that the cartel revised its world oil demand growth forecast by 0.1 million bpd.
OPEC noted that “oil demand in 3Q22 and 4Q22 is revised lower due to the zero-COVID-19 policy in China, ongoing geopolitical uncertainties and weaker economic activities.”
OPEC has also stated that the situation with supply was not easy to forecast due to uncertainties regarding the potential for the U.S. shale production and the looming EU sanctions on imports of Russian oil.
G7 countries plan to impose a price cap on Russian oil by December 5. Just three weeks are left before the mechanism would be imposed, but the exact details of the scheme are not known.
The broad consensus is that Russian oil exports will decrease after December 5. However, expectations vary widely, and it remains to be seen whether the oil price cap will have an immediate impact on the oil markets.
In the near term, traders do not pay too much attention to the fate of Russian oil exports. Today, WTI oil gained strong downside momentum and moved below the $86 level. It looks that the market is worried that OPEC will reduce its quotas at the next meeting in December.
While OPEC‘s forecast played a role in today’s move in the oil markets, rising coronavirus cases in China are the main driver behind the sell-off.
China has recently adjusted its COVID policy, which was bullish for oil markets. However, traders worry that the country will change its mind if the number of new coronavirus cases continues to grow at a robust pace.
The pace of economic growth in China will be the key driver for oil markets in the upcoming months as developed economies are slipping into recession. China‘s coronavirus policy has dealt a serious blow to the country’s economy. The potential reintroduction of all restrictions may put material pressure on oil markets.
Disclaimer:
The views in this article only represent the author's personal views, and do not constitute investment advice on this platform. This platform does not guarantee the accuracy, completeness and timeliness of the information in the article, and will not be liable for any loss caused by the use of or reliance on the information in the article.
Maxim Group LLC has reached a settlement with the Financial Industry Regulatory Authority (FINRA), agreeing to pay a fine of $75,000 due to violations related to their reporting practices. This fine comes in the wake of insufficient disclosures in the firm’s public quarterly reports on the handling of customer orders in National Market System (NMS) securities.
Choosing a reliable broker is crucial for both novice and experienced traders. Emarlado, a forex broker registered in Saint Lucia, has emerged in the market over the past two years, offering a variety of trading instruments ranging from currency pairs and stocks to cryptocurrencies, commodities, and indices. However, recent developments have raised concerns about the legitimacy of this broker, prompting many to question whether Emarlado is suspected of fraud.
Swissquote introduces fractional shares and crypto trading, offering affordable and flexible investment options with a new saving plan for diversified portfolios.
Elite Pro Markets is an unregulated, inaccessible Forex broker with no physical office. Rated 1.5 on WikiFX, it's a scam you should avoid.