WTI Price Stability Around $75 Amid OPEC+ Cut Expectations
Western Texas Intermediate (WTI), the U.S. benchmark crude oil, is currently trading near $75.05 as of Tuesday. WTI prices show modest gains, supported by expectations that the Organization of the Petroleum Exporting Countries and its allies (OPEC+) will extend oil production cuts in the upcoming Thursday meeting.
Amid the recent oil price slump, analysts predict that OPEC+ might consider extending or deepening production cuts into the next year. Saudi Arabia, the world's major oil exporter, is expected to prolong its supply cuts by an additional 1 million barrels per day into the next year, while Russia may contemplate further supply reductions of 300,000 barrels per day. If OPEC+ decides on deeper production cuts next year, it could restrain the downward momentum of WTI prices.
Furthermore, China is set to release National Bureau of Statistics (NBS) Purchasing Managers' Index (PMI) data on Thursday. Better-than-expected data might uplift WTI prices, considering China's significant role as the world's leading producer and consumer of oil.
On the flip side, the International Energy Agency (IEA) anticipates a mild surplus in crude oil production by 2024, even with OPEC+ extending cuts into the following year. Additionally, robust production from non-OPEC countries like the U.S. could contribute to price pressure.
Traders in the oil market will closely monitor U.S. growth figures on Wednesday, with the annual Gross Domestic Product (GDP) for Q3 expected to rise by 5%, up from the previous 4.9%. On Thursday, U.S. Personal Consumption Expenditures (PCE) inflation and China's NBS PMI data will be announced. The outcome of the OPEC+ meeting over the weekend will be crucial for oil traders, as these events could significantly impact WTI prices in USD. Oil traders will interpret signals from the data and explore trading opportunities around WTI prices.
Amid the recent oil price slump, analysts predict that OPEC+ might consider extending or deepening production cuts into the next year. Saudi Arabia, the world's major oil exporter, is expected to prolong its supply cuts by an additional 1 million barrels per day into the next year, while Russia may contemplate further supply reductions of 300,000 barrels per day. If OPEC+ decides on deeper production cuts next year, it could restrain the downward momentum of WTI prices.
Furthermore, China is set to release National Bureau of Statistics (NBS) Purchasing Managers' Index (PMI) data on Thursday. Better-than-expected data might uplift WTI prices, considering China's significant role as the world's leading producer and consumer of oil.
On the flip side, the International Energy Agency (IEA) anticipates a mild surplus in crude oil production by 2024, even with OPEC+ extending cuts into the following year. Additionally, robust production from non-OPEC countries like the U.S. could contribute to price pressure.
Traders in the oil market will closely monitor U.S. growth figures on Wednesday, with the annual Gross Domestic Product (GDP) for Q3 expected to rise by 5%, up from the previous 4.9%. On Thursday, U.S. Personal Consumption Expenditures (PCE) inflation and China's NBS PMI data will be announced. The outcome of the OPEC+ meeting over the weekend will be crucial for oil traders, as these events could significantly impact WTI prices in USD. Oil traders will interpret signals from the data and explore trading opportunities around WTI prices.
